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IMANET CMA Exam - Topic 5 Question 38 Discussion

Actual exam question for IMANET's CMA exam
Question #: 38
Topic #: 5
[All CMA Questions]

A proposed transfer price may be based upon the full-cost price Full-cost price is the

price

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Suggested Answer: C

Full-cost price is the price usually set by an absorption-costing calculation and includes materials, labor, and a full allocation of manufacturing O/H. This full-cost price may lead to dysfunctional behavior by the supplying and receiving divisions, e g., purchasing from outside sources at a slightly lower price that is substantially above the variable costs of internal production.


by Arthur at May 03, 2022, 01:38 PM

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Ronna
4 months ago
I don’t think it should include outside sales contributions.
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Nguyet
4 months ago
I think it’s usually based on absorption costing, right?
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Denise
4 months ago
Wait, is it really that straightforward?
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Stephen
4 months ago
Totally agree, it’s all about covering costs!
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Claribel
5 months ago
Full-cost price includes all costs incurred.
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Freeman
5 months ago
I’m leaning towards option D because it mentions variable costs, but I’m not entirely confident if that’s the right approach for full-cost pricing.
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Alona
5 months ago
I feel like option C sounds familiar because we talked about absorption costing in class, but I can't recall the specifics.
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Anabel
5 months ago
I remember practicing a similar question where we discussed how full-cost pricing can be influenced by market conditions. I think it might be option B.
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Lindsey
5 months ago
I think the full-cost price is related to the total costs incurred, but I'm not sure if it includes just cash outflows or something else too.
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Frederic
5 months ago
Hmm, I'm not totally sure about this one. I know the Daily Scrum and Sprint planning are timeboxed, but I can't remember if the Sprint itself is timeboxed.
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Jose
5 months ago
I'm pretty confident about this one. The timeout value is determined by the tickTime, which is 2000 ms, so the answer is C.
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Ernest
5 months ago
I've got a good feeling about this one. The question is specifically asking for a graphical view to monitor connections, so I'm going to go with WAAS Analytics. That feature sounds like it would provide the kind of visibility the administrator is looking for.
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Blythe
5 months ago
Key words like 'qualitative measures' and 'behavioral' suggest we want something about interaction quality, not just volume of visits or referrals. B seems strongest.
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