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CIMAPRO19-P01-1 Exam - Topic 9 Question 33 Discussion

Assume that you have made profit calculations based on standard profit calculation methods and activity based costing methods.In which ways will this information be beneficial to the management team?Select all the true statements.
A) Under an activity based costing system the various support activities that are involved in the process of making products or providing services are identified. and B) The cost drivers that cause a change to the cost of activities are also identified and used as the basis to attach activity costs to a particular product or service. and D) The identification of cost drivers provides information to management to enable them to take actions to improve the overall profitability of the company.
C) Through the tracing of costs to product in this way ABC establishes less accurate costs for the product or service.
E) Operational analysis will provide information to management on how costs can be incurred and managed.

CIMAPRO19-P01-1 Exam - Topic 9 Question 33 Discussion

Actual exam question for CIMA's CIMAPRO19-P01-1 exam
Question #: 33
Topic #: 9
[All CIMAPRO19-P01-1 Questions]

Assume that you have made profit calculations based on standard profit calculation methods and activity based costing methods.

In which ways will this information be beneficial to the management team?

Select all the true statements.

Show Suggested Answer Hide Answer
Suggested Answer: A, B, D

Contribute your Thoughts:

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Naomi
9 months ago
Operational analysis is crucial for managing costs effectively.
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Justa
9 months ago
Cost drivers help improve profitability for sure!
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Tamekia
9 months ago
Wait, are the costs really less accurate with ABC?
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Tawna
9 months ago
Totally agree, knowing cost drivers is key!
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Santos
9 months ago
ABC identifies support activities involved in production.
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Peggie
10 months ago
Okay, the key here is understanding the limitations of Copado Robotic Testing. I think I've got a good strategy for approaching this.
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Brynn
10 months ago
Alright, let's do this! Confidentiality, trust, protection - those are all important aspects of information security. I'm going to carefully read through the options and select the one that best fits the question.
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Tyisha
10 months ago
I'm a bit confused. The question mentions enabling Traffic Analytics, but the solution talks about assigning the Traffic Manager Contributor role. I'll need to double-check the details to make sure I'm on the right track.
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