Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions
Mail Us support@pass4success.com
Location US
Mob_nav_barsMENU

CIMAPRO19-P02-1 Exam - Topic 7 Question 52 Discussion

Actual exam question for CIMA's CIMAPRO19-P02-1 exam
Question #: 52
Topic #: 7
[All CIMAPRO19-P02-1 Questions]

Which of the following statements is TRUE about the activity based costing system when compared to absorption costing method?

Show Suggested Answer Hide Answer
Suggested Answer: C

by Minna at May 31, 2022, 10:51 AM

Limited Time Offer

25%

Off

Get Premium CIMAPRO19-P02-1 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

0/2000 characters
Submit Cancel
Paris
5 months ago
Yeah, I've heard ABC can be costly to implement too.
upvoted 0 times
...
Grover
5 months ago
I thought ABC was more detailed, not less!
upvoted 0 times
...
Chu
6 months ago
Wait, isn't ABC harder to manage?
upvoted 0 times
...
Corinne
6 months ago
Totally agree, absorption costing can be misleading.
upvoted 0 times
...
Nguyet
6 months ago
ABC provides more accurate overhead allocation for sure.
upvoted 0 times
...
Paul
6 months ago
I’m confused about the administration costs; I thought ABC was more complex, which could mean it costs more to run than absorption costing.
upvoted 0 times
...
Ammie
6 months ago
I practiced a similar question, and I think the key difference is that ABC focuses on activities, so it might be more accurate overall.
upvoted 0 times
...
Shawnda
6 months ago
I'm not entirely sure, but I feel like ABC is actually more detailed than absorption costing, which makes me lean away from B.
upvoted 0 times
...
Leontine
6 months ago
I think I remember that ABC is supposed to give a more accurate overhead allocation, so maybe C is the right answer?
upvoted 0 times
...
Lashandra
6 months ago
Hmm, I'm a bit confused by the wording here. I'll need to think this through carefully.
upvoted 0 times
...

Save Cancel