Discuss CIMA CIMAPRO19-P01-1 Exam Topic 5 Question 86

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

AABC provides a better understanding of overhead costs.

BABC provides more accurate product costs in a complex business environment.

CABC is cheaper to operate.

DABC results in increased unit profit for each product.

EABC leads to better product pricing decisions.

Suggested Answer: A, B, C

References:

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38 comments · newest first

Pauline 11 months ago

Really? I thought traditional costing was cheaper to run.

Tandra 11 months ago

ABC definitely helps with pricing decisions!

Denna 11 months ago

Not sure about the cost savings, though.

Jamal 12 months ago

Totally agree, especially in complex setups!

Cyndy 12 months ago

ABC gives a clearer view of overhead costs.

Tracie 1 year ago

I feel like I read somewhere that ABC is not necessarily cheaper to operate, but it does give more insights into costs.

Kindra 1 year ago

I practiced a similar question, and I think ABC can lead to better pricing decisions for products.

Tina 1 year ago

I’m not entirely sure, but I think ABC provides more accurate product costs compared to traditional methods.

Leslie 1 year ago

I remember that ABC helps in understanding overhead costs better, especially in complex environments.

Charlene 1 year 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.

Krystina 1 year 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.

Melodie 1 year 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.

Benedict 1 year 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.

Eliz 1 year 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.

Kate 1 year 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.

Zoila 1 year 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.

Brett 1 year ago

I think a valid predefined time range should be something longer, maybe a year? Not completely sure though.

Alecia 1 year 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.

Devora 1 year ago

I heard ABC stands for 'Absolutely Brilliant Costing' method. No wonder it's so popular!

Novella 1 year ago

↳ replying to Devora

Definitely, that's why it's called 'Absolutely Brilliant Costing' method!

Queenie 1 year ago

↳ replying to Devora

I think ABC leads to better product pricing decisions as well.

Marion 1 year ago

↳ replying to Devora

Yes, it also gives more accurate product costs in a complex business environment.

Adelle 1 year ago

↳ replying to Devora

I agree, ABC does provide a better understanding of overhead costs.

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.

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.

Marti 1 year ago

↳ replying to Ciara

Agreed, and it leads to better product pricing decisions as well.

Jenelle 1 year ago

↳ replying to Ciara

Yes, and it also gives more accurate product costs in a complex business environment.

Erick 1 year ago

↳ replying to Ciara

I think you're right, ABC does provide a better understanding of overhead costs.

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.

Carlene 1 year ago

↳ replying to Shawnda

It's important to have accurate product pricing decisions in a complex business environment.

Lezlie 1 year ago

↳ replying to Shawnda

ABC does provide a better understanding of overhead costs and more accurate product costs.

Kristin 1 year ago

↳ replying to Shawnda

I think A, B, and E are definitely advantages of activity-based costing.

Avery 2 years 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.

Elke 1 year ago

↳ replying to Avery

ABC really helps with understanding overhead costs and making better pricing decisions.

Pamela 1 year ago

↳ replying to Avery

I agree, A, B, and E are definitely the advantages of activity-based costing.

Matthew 2 years ago

I believe D is also an advantage of ABC, as it can result in increased unit profit for each product.

Billye 2 years ago

I agree with Barrie. ABC helps in understanding overhead costs and making better product pricing decisions.

Barrie 2 years ago

I think A, B, and E are advantages of ABC.

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