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

Reported profits using activity-based costing (ABC) may be different from reported profits using marginal costing because ABC:
A) ignores variable costs.
B) includes fixed costs within the cost of inventory.
C) treats materials as the only truly variable cost.
D) leads to a different selling price.

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

Actual exam question for CIMA's CIMAPRO19-P01-1 exam
Question #: 72
Topic #: 10
[All CIMAPRO19-P01-1 Questions]

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

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Suggested Answer: A

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

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Ailene
8 months ago
Surprised to see how much it can change profits!
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Cherri
8 months ago
I think it's more about how costs are allocated.
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Caitlin
8 months ago
Wait, does ABC really ignore variable costs?
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Sage
9 months ago
Totally agree, that's a big difference!
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Galen
9 months ago
ABC includes fixed costs in inventory, right?
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Romana
9 months ago
I don't think ABC ignores variable costs, so A seems wrong. But I’m not confident about the other options either.
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Tequila
9 months ago
I feel like I saw a similar question about how ABC treats costs, but I can't recall if it was about variable costs or fixed costs.
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Leah
9 months ago
I think option B sounds right because ABC includes fixed costs in inventory, which can affect profit reporting.
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Mabel
10 months ago
I remember that ABC allocates fixed costs differently than marginal costing, but I'm not sure if that's what the question is really asking.
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Willis
10 months ago
Volume and sensitivity of data protected seems like the most logical choice here. The more critical the data, the more important the key's lifespan would be.
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Domitila
10 months ago
This is a good one. The key is recognizing that you need both the SSL decryption capability and integration with a malware lookup service. I'd go with options A and B - the SSL decryption policy and the connection to Cisco AMP for Endpoints.
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Adelle
10 months ago
I remember security groups mainly apply to Layer 3, so I'm hesitant about C being correct – firewalls typically operate at a higher layer.
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Tamesha
10 months ago
Client provisioning sounds familiar, but I feel like that's more about getting devices ready for the network rather than identifying them.
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Wayne
1 year 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 year 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 year 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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Malcolm
1 year ago
D) leads to a different selling price.
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Makeda
1 year ago
C) treats materials as the only truly variable cost.
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Keneth
1 year ago
B) includes fixed costs within the cost of inventory.
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Rebbeca
1 year ago
A) ignores variable costs.
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Melissia
1 year 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
1 year 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
1 year ago
I agree with you, B makes sense. It can definitely impact reported profits.
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Marsha
1 year ago
I think B is the correct answer. ABC includes fixed costs within the cost of inventory.
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Ettie
1 year 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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King
1 year ago
That's true, it can lead to different reported profits.
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Charlene
1 year ago
So, reported profits using ABC may be different from marginal costing.
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Bronwyn
1 year ago
I agree, ABC includes fixed costs in the cost of inventory.
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Tegan
1 year ago
I think B is the correct answer.
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Catarina
1 year ago
It's important to consider how different costing methods can impact profits.
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Ernie
1 year ago
That's why reported profits using ABC may be different from marginal costing.
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Edmond
1 year ago
Yes, ABC includes fixed costs in the cost of inventory.
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Tracey
1 year ago
I think B is the correct answer.
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Gail
1 year ago
But ABC considers all costs, including fixed costs, so I still think B) is the correct answer.
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Marla
1 year ago
I disagree, I believe the answer is A) ignores variable costs.
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Gail
1 year ago
I think the answer is B) includes fixed costs within the cost of inventory.
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