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CIMA Exam CIMAPRO19-P01-1 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

References:


Contribute your Thoughts:

Devora
1 months ago
I heard ABC stands for 'Absolutely Brilliant Costing' method. No wonder it's so popular!
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Queenie
10 days ago
I think ABC leads to better product pricing decisions as well.
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Marion
15 days ago
Yes, it also gives more accurate product costs in a complex business environment.
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Adelle
1 months ago
I agree, ABC does provide a better understanding of overhead costs.
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Precious
2 months 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
2 months 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
9 days ago
Agreed, and it leads to better product pricing decisions as well.
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Jenelle
19 days ago
Yes, and it also gives more accurate product costs in a complex business environment.
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Erick
1 months ago
I think you're right, ABC does provide a better understanding of overhead costs.
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Shawnda
2 months 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 months ago
It's important to have accurate product pricing decisions in a complex business environment.
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Lezlie
2 months ago
ABC does provide a better understanding of overhead costs and more accurate product costs.
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Kristin
2 months ago
I think A, B, and E are definitely advantages of activity-based costing.
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Avery
3 months 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 months ago
ABC really helps with understanding overhead costs and making better pricing decisions.
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Pamela
1 months ago
I agree, A, B, and E are definitely the advantages of activity-based costing.
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Matthew
3 months 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
3 months ago
I agree with Barrie. ABC helps in understanding overhead costs and making better product pricing decisions.
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Barrie
3 months ago
I think A, B, and E are advantages of ABC.
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