CIMA Exam CIMAPRA17-BA2-1 Topic 1 Question 69 Discussion

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

Question #: 69
Topic #: 1

[All CIMAPRA17-BA2-1 Questions]

Within a relevant range of output, the fixed cost per unit of a product will:

AIncrease as total output increases

BRemain constant as total output increases

CReduce as total output increases

DImpossible to tell without more information

Show Suggested Answer

Suggested Answer: B

by Emerson at May 01, 2024, 04:30 PM

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Alisha

6 days ago

I'm going with C. As the total output increases, the fixed cost can be spread across more units, so the fixed cost per unit should decrease.

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Daren

13 days ago

D seems like the safest option here. We need more information about the specific product and its cost structure to determine how the fixed cost per unit will change.

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Dottie

16 days ago

I think the answer is B. The fixed cost per unit should remain constant as total output increases, since the fixed costs are, well, fixed.

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Virgie

18 days ago

I'm not sure, but I think C) Reduce as total output increases could also be a possibility. It depends on the economies of scale.

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Kirk

19 days ago

I agree with Jeannetta. Fixed costs are spread out over more units as output increases.

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Jeannetta

22 days ago

I think the answer is B) Remain constant as total output increases.

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