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CIMAPRO19-P01-1 Exam - Topic 5 Question 86 Discussion

Which THREE of the following are advantages of activity-based costing (ABC), in a multi-product environment, when compared with traditional absorption costing?
A) ABC provides a better understanding of overhead costs. and B) ABC provides more accurate product costs in a complex business environment. and C) ABC is cheaper to operate.
D) ABC results in increased unit profit for each product.
E) ABC leads to better product pricing decisions.

CIMAPRO19-P01-1 Exam - Topic 5 Question 86 Discussion

Actual exam question for CIMA's CIMAPRO19-P01-1 exam
Question #: 86
Topic #: 5
[All CIMAPRO19-P01-1 Questions]

Which THREE of the following are advantages of activity-based costing (ABC), in a multi-product environment, when compared with traditional absorption costing?

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Suggested Answer: A, B, C

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by Pilar at Apr 27, 2024, 07:44 PM

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Pauline
9 months ago
Really? I thought traditional costing was cheaper to run.
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Tandra
10 months ago
ABC definitely helps with pricing decisions!
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Denna
10 months ago
Not sure about the cost savings, though.
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Jamal
10 months ago
Totally agree, especially in complex setups!
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Cyndy
10 months ago
ABC gives a clearer view of overhead costs.
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Tracie
10 months ago
I feel like I read somewhere that ABC is not necessarily cheaper to operate, but it does give more insights into costs.
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Kindra
11 months ago
I practiced a similar question, and I think ABC can lead to better pricing decisions for products.
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Tina
11 months ago
I’m not entirely sure, but I think ABC provides more accurate product costs compared to traditional methods.
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Leslie
11 months ago
I remember that ABC helps in understanding overhead costs better, especially in complex environments.
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Charlene
11 months ago
This is a great question to test our understanding of ABC. I think the key advantages are the improved cost visibility, more accurate product costs, and the ability to make better pricing decisions. I'll select those three options.
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Krystina
11 months ago
I'm feeling a bit lost on this one. The wording of the options is tripping me up. I'll need to review my notes on ABC and traditional costing to make sure I understand the differences before answering.
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Melodie
11 months ago
Okay, I've got this. ABC provides better visibility into overhead costs, more accurate product costs, and leads to better pricing decisions - those are the three I'll select.
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Benedict
11 months ago
Hmm, I'm a bit unsure about this one. The options seem similar, and I'll need to really think through the differences between ABC and traditional costing to determine the key advantages.
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Eliz
11 months ago
This looks like a straightforward question on the advantages of ABC over traditional costing. I'll need to carefully consider each option and choose the three that best fit the criteria.
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Kate
11 months ago
This question seems pretty straightforward. I think I know the Lockheed Martin kill chain stages pretty well, so I should be able to identify the correct description.
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Zoila
11 months ago
This question seems straightforward. I think the answer is B - the Coherence cache configuration file needs to include connection properties to enable Coherence*Extend clients to connect to the cluster via TCP/IP.
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Brett
11 months ago
I think a valid predefined time range should be something longer, maybe a year? Not completely sure though.
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Alecia
11 months ago
Okay, I've got this. The answer is to add the compressor sub-components as sub-assets on the refrigerator customer asset record. That way, they'll be properly associated and set up for the customer.
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Devora
1 year ago
I heard ABC stands for 'Absolutely Brilliant Costing' method. No wonder it's so popular!
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Novella
1 year ago
Definitely, that's why it's called 'Absolutely Brilliant Costing' method!
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Queenie
1 year ago
I think ABC leads to better product pricing decisions as well.
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Marion
1 year ago
Yes, it also gives more accurate product costs in a complex business environment.
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Adelle
1 year ago
I agree, ABC does provide a better understanding of overhead costs.
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Precious
1 year ago
D? Really? Increased unit profit for each product? That's a bit of a stretch. A, B, and E are the clear winners here.
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Ciara
1 year ago
I'm not sure about C. Isn't ABC generally more expensive to implement? Regardless, A, B, and E are definitely the right answers.
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Marti
1 year ago
Agreed, and it leads to better product pricing decisions as well.
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Jenelle
1 year ago
Yes, and it also gives more accurate product costs in a complex business environment.
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Erick
1 year ago
I think you're right, ABC does provide a better understanding of overhead costs.
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Shawnda
1 year ago
I agree, A, B, and E are the way to go. ABC is a lot more accurate than traditional costing, which is crucial in today's environment.
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Carlene
1 year ago
It's important to have accurate product pricing decisions in a complex business environment.
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Lezlie
1 year ago
ABC does provide a better understanding of overhead costs and more accurate product costs.
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Kristin
1 year ago
I think A, B, and E are definitely advantages of activity-based costing.
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Avery
1 year ago
A, B, and E seem like the obvious choices here. ABC is great for understanding overhead and making better pricing decisions in a complex business.
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Elke
1 year ago
ABC really helps with understanding overhead costs and making better pricing decisions.
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Pamela
1 year ago
I agree, A, B, and E are definitely the advantages of activity-based costing.
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Matthew
1 year ago
I believe D is also an advantage of ABC, as it can result in increased unit profit for each product.
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Billye
1 year ago
I agree with Barrie. ABC helps in understanding overhead costs and making better product pricing decisions.
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Barrie
1 year ago
I think A, B, and E are advantages of ABC.
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