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Reported profits using activity-based costing (ABC) may be different from reported profits using marginal costing because ABC:
Suggested Answer: A
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36 comments · newest first
AI
Ailene
11 months ago
Surprised to see how much it can change profits!
CH
Cherri
11 months ago
I think it's more about how costs are allocated.
CA
Caitlin
12 months ago
Wait, does ABC really ignore variable costs?
SA
Sage
12 months ago
Totally agree, that's a big difference!
GA
Galen
1 year ago
ABC includes fixed costs in inventory, right?
RO
Romana
1 year ago
I don't think ABC ignores variable costs, so A seems wrong. But I’m not confident about the other options either.
TE
Tequila
1 year 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.
LE
Leah
1 year ago
I think option B sounds right because ABC includes fixed costs in inventory, which can affect profit reporting.
MA
Mabel
1 year 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.
WI
Willis
1 year 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.
DO
Domitila
1 year 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.
AD
Adelle
1 year 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.
TA
Tamesha
1 year ago
Client provisioning sounds familiar, but I feel like that's more about getting devices ready for the network rather than identifying them.
WA
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!
RO
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?
JI
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!
MA
Malcolm
1 year ago
D) leads to a different selling price.
MA
Makeda
1 year ago
C) treats materials as the only truly variable cost.
KE
Keneth
1 year ago
B) includes fixed costs within the cost of inventory.
RE
Rebbeca
1 year ago
A) ignores variable costs.
ME
Melissia
1 year ago
I'm going with D. ABC can result in a different selling price, which in turn affects the reported profits.
BL
Blossom
1 year ago
I'm not sure, but I think D could also be a possibility. Different selling prices can definitely affect profits.
VI
Vicki
1 year ago
I agree with you, B makes sense. It can definitely impact reported profits.
MA
Marsha
1 year ago
I think B is the correct answer. ABC includes fixed costs within the cost of inventory.
ET
Ettie
2 years 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.
KI
King
1 year ago
That's true, it can lead to different reported profits.
CH
Charlene
1 year ago
So, reported profits using ABC may be different from marginal costing.
BR
Bronwyn
1 year ago
I agree, ABC includes fixed costs in the cost of inventory.
TE
Tegan
1 year ago
I think B is the correct answer.
CA
Catarina
1 year ago
It's important to consider how different costing methods can impact profits.
ER
Ernie
1 year ago
That's why reported profits using ABC may be different from marginal costing.
ED
Edmond
1 year ago
Yes, ABC includes fixed costs in the cost of inventory.
TR
Tracey
1 year ago
I think B is the correct answer.
GA
Gail
2 years ago
But ABC considers all costs, including fixed costs, so I still think B) is the correct answer.
MA
Marla
2 years ago
I disagree, I believe the answer is A) ignores variable costs.
GA
Gail
2 years ago
I think the answer is B) includes fixed costs within the cost of inventory.