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

Show Suggested Answer

Suggested Answer: D

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

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Sonia

1 months ago

Wait, are we sure the gym equipment is a variable cost? Sounds like something that should be depreciated. I'll stick with B, E, and F.

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Arthur

4 days ago

B) Food

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Felton

17 days ago

A) Advertising

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Diane

1 months ago

Alright, let's see. I think food, beverages, and outside laundry service are the most likely variable costs here. Gotta keep those towels clean, am I right?

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Elbert

1 months ago

Haha, the restaurant manager's salary as a variable cost? That's a good one! I'm going to go with B, E, and F.

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Helga

1 months ago

Hmm, this is tricky. I'm not sure about depreciation on gym equipment - is that really a variable cost? I'd go with B, E, and F.

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Desire

2 days ago

Yeah, those are the costs that change based on the level of activity in the hotel.

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Celeste

4 days ago

You're right, I think Food, Beverages, and Outside laundry service are the variable costs.

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My

22 days ago

Depreciation on gym equipment is actually a fixed cost, so that one is out.

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Mendy

2 months 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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Tayna

1 months ago

Depreciation on gym equipment, advertising, and restaurant manager's salary are considered fixed costs.

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Cristal

2 months ago

Food, beverages, and outside laundry service are indeed variable costs.

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Ira

2 months ago

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

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Carmela

3 months ago

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

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Hildred

3 months ago

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

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