CIMA Exam CIMAPRA17-BA2-1 Topic 1 Question 88 Discussion

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

Question #: 88
Topic #: 1

[All CIMAPRA17-BA2-1 Questions]

Within the relevant range, a variable cost is a cost which:

Acannot be forecast with any degree of accuracy because of its variability.

Bvaries in total in proportion to the level of activity.

Cvaries per unit in proportion to the level of activity.

Dvaries in total in proportion to the level of inflation.

Show Suggested Answer

Suggested Answer: B

by Casie at Jan 14, 2025, 09:07 AM

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5 days ago

I agree with Jaime. Variable costs are directly tied to the volume of production or sales, not external factors like inflation.

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14 days ago

I'm not sure, but I think it's C. Variable costs per unit change with activity levels.

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16 days ago

I agree with Tegan, because variable costs change in total as activity changes.

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17 days ago

Option B seems the most accurate to me. Variable costs definitely vary with the level of activity, not just inflation.

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22 days ago

I think the answer is B.

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