CIMAPRO19-P01-1 Exam - Topic 7 Question 51 Discussion

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

Question #: 51
Topic #: 7

[All CIMAPRO19-P01-1 Questions]

A company's budgeted data for the period are shown in the table below.

There is a stepped increase in fixed overheads of $10,000 when production exceeds 52,000 units.

Actual production for the period was 60,000 units.

What is the flexed budgeted cost for the period?

Give your answer as a whole number (in '000s).

A$3070000

Show Suggested Answer

Suggested Answer: A

by Glenna at May 04, 2022, 10:26 PM

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Susy

5 months ago

Yup, that’s right! It adds up with the production increase.

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Jean

6 months ago

So, the flexed budgeted cost should be $3,070,000 then.

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Desiree

6 months ago

Wait, are we sure about that $10,000 increase? Seems high.

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Heike

6 months ago

Totally agree, that change impacts the overall budget!

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Valentine

6 months ago

The fixed overheads increase by $10,000 after 52,000 units.

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Shala

6 months ago

Hmm, I'm a bit confused. I'm not sure if it's A, C, or D. I'll have to think this through carefully.

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Vivienne

6 months ago

TCP/IP is the answer, no question. That's the communication protocol that underpins the entire internet infrastructure.

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Latricia

6 months ago

I vaguely remember that minimizing dependencies is important, but I'm confused about whether that means to keep logic together or split it up.

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