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CIMAPRO19-P02-1 Exam - Topic 3 Question 98 Discussion

When considering a capital investment, relevant costs for decision making have which THREE of the following features?
A) They are future costs.
B) They are committed costs.
C) They are incremental costs.
D) They are unavoidable costs.
E) They are cash flows.

CIMAPRO19-P02-1 Exam - Topic 3 Question 98 Discussion

Actual exam question for CIMA's CIMAPRO19-P02-1 exam
Question #: 98
Topic #: 3
[All CIMAPRO19-P02-1 Questions]

When considering a capital investment, relevant costs for decision making have which THREE of the following features?

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Suggested Answer: A

by Josphine at Sep 13, 2024, 06:36 PM

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Aron
8 months ago
Surprised that unavoidable costs are even mentioned!
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Lindsey
8 months ago
Cash flows are definitely relevant here!
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Lilli
8 months ago
Wait, committed costs? Aren't those already sunk?
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Janey
8 months ago
Totally agree, incremental costs matter too!
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Francis
9 months ago
They are future costs.
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Simona
9 months ago
From what I studied, I’m pretty sure that future costs and incremental costs are correct, but I’m uncertain about the third one.
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Shawnda
9 months ago
I practiced a similar question, and I think cash flows are relevant too, but I can't recall if unavoidable costs fit in this context.
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Sherron
9 months ago
I think incremental costs are definitely relevant, but I'm a bit confused about committed costs being included.
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Lettie
9 months ago
I remember that relevant costs should definitely be future costs, but I'm not sure about the other two.
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Leslie
9 months ago
The key here is to identify the three features that are most important for relevant costs in capital investment decisions. I'll methodically go through each option and select the ones that best fit that criteria.
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Keneth
9 months ago
Wait, I'm confused. Are cash flows considered relevant costs? I'm not sure if that's one of the right answers here. I'll have to review my notes on relevant costing before answering this.
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Margart
9 months ago
Okay, I think I've got this. Future costs, incremental costs, and committed costs - those are the three features that relevant costs for capital investment decisions should have. I'm feeling confident about this one.
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Jestine
9 months ago
This seems like a straightforward question about relevant costs for capital investment decisions. I'll need to carefully consider each option and identify the three that best fit the criteria.
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Gearldine
10 months ago
Hmm, I'm a bit unsure about this one. I know relevant costs are important for capital investment decisions, but I'm not totally clear on the specific features they should have. I'll need to think this through carefully.
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Shonda
1 year ago
This question is making my brain hurt. Why can't they just ask about sunk costs? That's the only thing I'm really confident about in capital investment decisions.
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Tiffiny
1 year ago
Let's focus on understanding the concept of relevant costs better.
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Twila
1 year ago
Committed costs and unavoidable costs are not relevant for decision making.
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Geraldo
1 year ago
I think the relevant costs for decision making are future costs, incremental costs, and cash flows.
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Lottie
1 year ago
I agree, sunk costs are easier to understand.
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Scarlet
1 year ago
Haha, if only the answer was as easy as 'cash is king'! But of course, there's more to it than that. Gotta consider those incremental costs too.
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Paris
1 year ago
Yes, cash flows and future costs are also crucial factors to take into account. It's not just about the initial investment.
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Ashton
1 year ago
True, incremental costs are definitely important to consider when making capital investment decisions.
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Lindy
1 year ago
I'm pretty sure committed and unavoidable costs are also important, but I'm not 100% sure. Hmm, maybe I should review my notes on this topic again.
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Janna
1 year ago
A, C, and E seem like the relevant features for capital investment decision-making. The future costs and incremental cash flows are crucial factors to consider.
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Dana
1 year ago
I think relevant costs are cash flows because they affect the company's cash position.
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Alfreda
1 year ago
I believe relevant costs are incremental costs.
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Ivan
1 year ago
I think relevant costs for decision making are future costs.
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