CIMA Exam CIMAPRA17-BA2-1 Topic 1 Question 42 Discussion

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

Question #: 42
Topic #: 1

[All CIMAPRA17-BA2-1 Questions]

Over absorption of overhead will always arise when:

Aactual overhead incurred is lower than budgeted overhead

Bactual overhead incurred is lower than absorbed overhead

Cabsorbed overhead is lower than actual overhead incurred

Dabsorbed overhead is higher than budgeted overhead

Show Suggested Answer

Suggested Answer: D

by Joseph at Oct 15, 2022, 05:35 AM

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Frank

1 months ago

Ah, the age-old battle between actual and absorbed overhead. I'm feeling lucky, so I'll go with A. Lower actual overhead? That's the kind of problem I can get behind!

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Sina

8 days ago

User 3: I agree with Glendora, A seems like the right choice here.

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Glendora

10 days ago

User 2: I'm not so sure, I think it might be C. Absorbed overhead lower than actual overhead.

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Ligia

19 days ago

User 1: I think the answer is A. Lower actual overhead sounds good to me.

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Laticia

1 months ago

Over-absorption, huh? Sounds like a fancy way of saying the accountants are padding their numbers a bit too much. I'll go with B, just to keep them on their toes.

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Shawnta

1 months ago

Yeah, I'll go with B too, just to make sure they're not getting away with anything.

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Gearldine

1 months ago

I agree, it's like the accountants are trying to make things look better than they actually are.

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Lazaro

1 months ago

I think over-absorption happens when the actual overhead incurred is lower than absorbed overhead.

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Juan

2 months ago

Hmm, this one's tricky. I'm going to go with D. Absorbed overhead being higher than budgeted overhead sounds like a recipe for over-absorption to me.

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Antione

21 days ago

I'm leaning towards A, but I can see why you would choose D.

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Elfrieda

1 months ago

I'm not so sure, I think C might be the correct answer here.

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Belen

1 months ago

I think you're right, D does seem like the most logical choice.

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Cassandra

2 months ago

I think the correct answer is C. When the absorbed overhead is lower than the actual overhead incurred, it will result in over-absorption of overhead.

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