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CIMAPRO19-P01-1 Exam - Topic 5 Question 124 Discussion

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

Question #: 124
Topic #: 5

[All CIMAPRO19-P01-1 Questions]

Which of the following would lead to a favourable variance?

AThe standard material price was set too low.

BThe standard material usage was set too low.

CActual labour cost was higher than standard.

DLabour hours worked were lower than standard.

Show Suggested Answer

Suggested Answer: D

by Carman at Apr 12, 2026, 08:07 AM

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Eden

10 hours ago

D is definitely a favourable variance!

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Hester

6 days ago

B seems a bit off to me, not sure it leads to anything good.

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Brandon

11 days ago

Wow, I never thought about it that way.

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Lorriane

16 days ago

No way, C is just wrong. Higher costs can't be favourable!

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Kirk

2 months ago

I think A could also lead to a favourable variance.

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Roy

2 months ago

D is definitely a favourable variance.

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Carmela

3 months ago

I'm a bit confused about A and B. If the standard material price or usage is set too low, wouldn't that lead to an unfavourable variance instead?

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Britt

3 months ago

This question feels similar to one we did in practice about variances. I think D makes the most sense since fewer hours worked could save money.

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Marvel

3 months ago

I remember something about standard prices being set too low causing issues, but I'm not sure if that applies here.

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Emogene

3 months ago

I think a favourable variance happens when actual costs are lower than standard, so maybe D is the right answer?

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