CIMA Exam CIMAPRA17-BA2-1 Topic 1 Question 51 Discussion

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

Question #: 51
Topic #: 1

[All CIMAPRA17-BA2-1 Questions]

The following is an extract from a budgetary control report for the latest period:

The budget variance for prime cost is:

A$3,260 adverse

B$18,580 adverse

C$3,340 adverse

D$3,260 favourable

Show Suggested Answer

Suggested Answer: C

https://www.acowtancy.com/textbook/acca-ma/a3-cost-classification/cost-objects-cost-units-and-cost-centres-/notes

by James at Apr 02, 2023, 04:28 PM

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Sol

5 days ago

The question clearly states that the budget variance for prime cost is adverse, so I'm going with option B. $18,580 adverse variance seems like the correct answer here.

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Arminda

14 days ago

But the actual cost is higher than the budgeted cost, so it should be adverse. I stick with my answer.

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Lenora

21 days ago

I disagree, I believe the correct answer is D) $3,260 favourable.

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Arminda

24 days ago

I think the answer is A) $3,260 adverse.

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