CIMAPRO19-P02-1 Exam - Topic 6 Question 83 Discussion

Actual exam question for CIMA's CIMAPRO19-P02-1 exam

Question #: 83
Topic #: 6

Company X is considering the launch of a new product. In order to compete in the market the selling price must be $100 per unit. Company X aims to achieve a sales margin of 25 per cent.

Direct materials cost is $75 for each unit. It takes 15 minutes for workers to assemble each unit. Workers are paid $16 per hour. 5 per cent of paid time is idle. Overheads are absorbed at $6.50 per unit.

What is the value of any cost gap between the forecast total cost and the target cost?

A$10.71

B$5.50

C$10.50

D$9.10

Show Suggested Answer

Suggested Answer: A

by Estrella at Mar 19, 2024, 03:08 AM

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Jacquline

4 months ago

Overheads at $6.50 per unit? That's a lot!

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Franchesca

5 months ago

Wait, how did they come up with $100 selling price? Seems off.

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Kristian

5 months ago

$10.50 sounds about right for the cost gap.

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Carin

5 months ago

I think the target cost is too high for that margin.

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Bette

5 months ago

The direct materials cost is $75 per unit.

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Maricela

6 months ago

I think the direct materials and labor costs combined should give us a good idea of the total cost, but I can't recall the exact formula for the cost gap.

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Devorah

6 months ago

I feel like I might be missing something with the sales margin calculation. Wasn't it supposed to be based on the selling price?

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Galen

6 months ago

This question seems similar to the practice problems we did on cost analysis. I think the overheads play a big role in the total cost.

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Daron

6 months ago

I remember we calculated target costs in class, but I'm not sure how to factor in the idle time for workers.

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Adelaide

6 months ago

This is a tricky one, but I think if I break it down into the individual cost components and do the math, I can figure out the cost gap.

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Louvenia

6 months ago

The key here is to find the target cost based on the 25% sales margin, then compare that to the forecast total cost. I've got a good strategy for this.

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Karma

6 months ago

Okay, let me start by calculating the total cost per unit. I'll need to factor in the direct materials, labor, and overhead costs.

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Crista

6 months ago

This question looks straightforward, I think I can work through the calculations step-by-step to find the cost gap.

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Brittney

6 months ago

Hmm, I'm a bit unsure about how to approach this. I'll need to carefully read through the details and make sure I understand all the variables involved.

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Francine

6 months ago

The key here is understanding the purpose of the XML Schema document. It's defining the structure of a 'Book' element, not the root element of an XML document. So option A is not correct.

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Zachary

6 months ago

I'm a bit unsure, but I think the raw material inventory at the end of period 1 should include the 100 litres purchased at $21.

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Ilene

6 months ago

This question is testing our understanding of how WebLogic Server handles database connectivity issues. I'm confident that if the server can't connect to the database, it will fail to start, so I'll choose option D.

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Fidelia

7 months ago

ActiveX controls are the right answer here. That's the technology that allows for full system access.

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Gladys

11 months ago

I feel like I'm trying to solve a Rubik's cube while juggling chainsaws. Accounting, you never cease to amaze me.

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Gracie

11 months ago

This question is like a secret code that only accountants can decipher. I'll just stare at it until the answer magically appears in my head.

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Lino

10 months ago

No, I believe it's A) $10.71

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Luisa

10 months ago

B) $5.50

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Vanesa

10 months ago

I think the answer is A) $10.71

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Lachelle

10 months ago

A) $10.71

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Quiana

11 months ago

Okay, let's break this down step-by-step. Piece of cake, right? Except for the part where I have to remember how to do math.

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Samira

10 months ago

C) $10.50

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Bette

10 months ago

B) $5.50

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Lynda

10 months ago

A) $10.71

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Hassie

11 months ago

Hmm, let's see... 25% sales margin, $75 materials cost, 15 minutes assembly time, and 5% idle time. I need a calculator the size of a small car to solve this one.

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