Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions
Mail Us support@pass4success.com
Location US
Mob_nav_barsMENU

CIMAPRO19-P01-1 Exam - Topic 3 Question 106 Discussion

Actual exam question for CIMA's CIMAPRO19-P01-1 exam
Question #: 106
Topic #: 3
[All CIMAPRO19-P01-1 Questions]

Company NBO is providing a quote to manufacture 500 passenger seats for a bus company.

Relevant cost is being used as the basis for the quote.

Which THREE of the following should be included as relevant costs or savings in the production of the 500 passenger seats?

Show Suggested Answer Hide Answer
Suggested Answer: C

References:


by Jennifer at Jan 28, 2025, 03:34 PM

Limited Time Offer

25%

Off

Get Premium CIMAPRO19-P01-1 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

0/2000 characters
Submit Cancel
Cristal
4 months ago
Admin overheads shouldn't be included, they’re fixed costs.
upvoted 0 times
...
Valene
5 months ago
Totally agree, idle time pay is relevant if the quote isn't accepted!
upvoted 0 times
...
Kelvin
5 months ago
Wait, why is equipment depreciation relevant? Seems off.
upvoted 0 times
...
Melvin
5 months ago
I think the electricity charges should count too.
upvoted 0 times
...
Xochitl
5 months ago
Definitely includes the seat cover material, it's specific to this order.
upvoted 0 times
...
Mariann
6 months ago
The seat cover material seems relevant since it can't be used elsewhere, but I'm a bit confused about the idle time pay. Would that be included?
upvoted 0 times
...
Precious
6 months ago
I practiced a similar question where we had to exclude overheads, so I think administration overheads should not be included here either.
upvoted 0 times
...
Jimmie
6 months ago
I'm not sure about the equipment depreciation; I thought it was a sunk cost and shouldn't be included in relevant costs.
upvoted 0 times
...
Lorenza
6 months ago
I remember we discussed that only costs directly related to the production should be included, so I think electricity charges might be relevant.
upvoted 0 times
...
Patrick
6 months ago
The consultant's advice fee seems like a relevant cost since it's specifically for this order. I'll make sure to include that one.
upvoted 0 times
...
Dortha
6 months ago
I'm not sure about the administration overheads and the idle time pay. Those seem more like indirect costs, but I'll have to double-check the definitions.
upvoted 0 times
...
Cheryll
6 months ago
I'm pretty confident that the equipment depreciation, electricity charges, and seat cover material are all relevant costs that should be included.
upvoted 0 times
...
Jeannetta
6 months ago
Okay, let's think this through step-by-step. We need to identify the costs that are directly related to the production of the 500 passenger seats.
upvoted 0 times
...
Marta
6 months ago
This question seems straightforward, but I want to make sure I understand the concept of relevant costs before selecting the answers.
upvoted 0 times
...
Dana
11 months ago
Hmm, let's see. Equipment depreciation, electricity charges, admin overheads... Sounds like a real electrifying, bureaucratic production line we've got here! I'd definitely include the consultant's fee - gotta make sure those seats are 'chair-ismatic' enough to win the contract.
upvoted 0 times
...
Rupert
11 months ago
Wait, are we supposed to be answering this for an exam? Yikes, I should've paid more attention in class. Guess I'll just pick the ones that sound the most 'relevant' and hope for the best!
upvoted 0 times
Clay
10 months ago
E) Idle time pay of $1,000 which would be paid to workers if the quote is not accepted
upvoted 0 times
...
Vashti
10 months ago
D) Seat cover material, to be bought for $6,000, which cannot be used on other products.
upvoted 0 times
...
Lynelle
10 months ago
A) Equipment depreciation of $2,000 for the time the passenger seats are in production.
upvoted 0 times
...
...
Noemi
11 months ago
I'm gonna have to disagree with my peers. E is a must-include - you can't just ignore the idle time pay if the quote isn't accepted. That's a real cost that needs to be factored in.
upvoted 0 times
...
Chanel
11 months ago
I would go with B, C, and D. The electricity charges and administration overheads are still costs associated with the order, even if they're not directly for the production. And the seat cover material is a no-brainer.
upvoted 0 times
Jess
10 months ago
I'm not sure about E and F, they seem more like potential costs if the order is not accepted.
upvoted 0 times
...
Dahlia
10 months ago
I think A should be included too, equipment depreciation is important for the production.
upvoted 0 times
...
Barabara
10 months ago
I agree, B, C, and D should definitely be included as relevant costs.
upvoted 0 times
...
...
Nobuko
12 months ago
A, D, and F seem like the most relevant costs to include in the quote. The equipment depreciation, seat cover material, and consultant's advice all directly impact the production costs.
upvoted 0 times
Franklyn
10 months ago
Electricity charges should be included as a relevant cost since it is directly related to completing the order.
upvoted 0 times
...
Georgeanna
10 months ago
Idle time pay should not be included as a relevant cost since it is only applicable if the quote is not accepted.
upvoted 0 times
...
Ettie
11 months ago
I think administration overheads should also be included since it is directly related to the production of the passenger seats.
upvoted 0 times
...
Leota
11 months ago
I agree, including equipment depreciation, seat cover material, and consultant's advice in the quote makes sense.
upvoted 0 times
...
Marla
11 months ago
Including those costs in the quote would give a more accurate picture of the total production expenses.
upvoted 0 times
...
Marla
11 months ago
I agree, those costs are directly related to the production of the passenger seats.
upvoted 0 times
...
...
Arletta
1 year ago
I'm not sure about E. Wouldn't idle time pay only be relevant if the quote is not accepted?
upvoted 0 times
...
Justine
1 year ago
I agree with Sylvie. A for equipment depreciation, D for seat cover material, and E for idle time pay make sense.
upvoted 0 times
...
Sylvie
1 year ago
I think A, D, and E should be included as relevant costs.
upvoted 0 times
...

Save Cancel