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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?

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Suggested Answer: C

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

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Paris
7 months ago
Yeah, I've heard ABC can be costly to implement too.
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Grover
7 months ago
I thought ABC was more detailed, not less!
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Chu
7 months ago
Wait, isn't ABC harder to manage?
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Corinne
7 months ago
Totally agree, absorption costing can be misleading.
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Nguyet
8 months ago
ABC provides more accurate overhead allocation for sure.
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Paul
8 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.
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Ammie
8 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.
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Shawnda
8 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.
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Leontine
8 months ago
I think I remember that ABC is supposed to give a more accurate overhead allocation, so maybe C is the right answer?
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Lashandra
8 months ago
Hmm, I'm a bit confused by the wording here. I'll need to think this through carefully.
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