CIMA Exam CIMAPRO19-P01-1 Topic 10 Question 72 Discussion

Actual exam question for CIMA's CIMAPRO19-P01-1 exam

Question #: 72
Topic #: 10

Reported profits using activity-based costing (ABC) may be different from reported profits using marginal costing because ABC:

Aignores variable costs.

Bincludes fixed costs within the cost of inventory.

Ctreats materials as the only truly variable cost.

Dleads to a different selling price.

Show Suggested Answer

Suggested Answer: A

References:

by Refugia at Jul 26, 2023, 11:47 AM

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Wayne

1 months ago

I'm just glad I don't have to remember all these costing methods for the exam. I'd rather be counting sheep than counting costs!

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Rodney

1 months ago

I'm torn between B and D, but I'm leaning towards B. Gotta love these tricky accounting questions, am I right?

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Jina

1 months ago

Haha, I bet the person who wrote this question was having a real 'ABC' moment when they came up with these options!

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Rebbeca

10 days ago

A) ignores variable costs.

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Melissia

2 months ago

I'm going with D. ABC can result in a different selling price, which in turn affects the reported profits.

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Blossom

15 days ago

I'm not sure, but I think D could also be a possibility. Different selling prices can definitely affect profits.

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Vicki

22 days ago

I agree with you, B makes sense. It can definitely impact reported profits.

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Marsha

1 months ago

I think B is the correct answer. ABC includes fixed costs within the cost of inventory.

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Ettie

2 months ago

I think B is the correct answer. ABC includes fixed costs in the cost of inventory, which can lead to different reported profits compared to marginal costing.

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Catarina

6 hours ago

It's important to consider how different costing methods can impact profits.

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Ernie

5 days ago

That's why reported profits using ABC may be different from marginal costing.

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Edmond

19 days ago

Yes, ABC includes fixed costs in the cost of inventory.

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Tracey

1 months ago

I think B is the correct answer.

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Gail

2 months ago

But ABC considers all costs, including fixed costs, so I still think B) is the correct answer.

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Marla

2 months ago

I disagree, I believe the answer is A) ignores variable costs.

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Gail

3 months ago

I think the answer is B) includes fixed costs within the cost of inventory.

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