CIMA Exam CIMAPRA17-BA2-1 Topic 1 Question 34 Discussion

Actual exam question for CIMA's CIMAPRA17-BA2-1 exam

Question #: 34
Topic #: 1

The following costs are incurred by a company which owns a five star hotel. Which THREE of the items would normally be classified as variable costs?

AAdvertising

BFood

CDepreciation on gym equipment

DRestaurant Manager's salary

EBeverages

FOutside laundry service

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Suggested Answer: D

by Bobbye at May 08, 2022, 07:39 PM

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11 days ago

I think food, beverages, and outside laundry service are the variable costs. The others seem more like fixed costs to me.

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20 days ago

I'm not sure about outside laundry service. I think advertising, food, and beverages are variable costs.

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23 days ago

I agree with Hildred. Those costs can change based on the level of business activity.

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25 days ago

I think food, beverages, and outside laundry service are variable costs.

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