CIMA Exam CIMAPRO19-P01-1 Topic 10 Question 72 Discussion

Actual exam question for CIMA's CIMAPRO19-P01-1 exam

Question #: 72
Topic #: 10

Reported profits using activity-based costing (ABC) may be different from reported profits using marginal costing because ABC:

Aignores variable costs.

Bincludes fixed costs within the cost of inventory.

Ctreats materials as the only truly variable cost.

Dleads to a different selling price.

Show Suggested Answer

Suggested Answer: A

References:

by Refugia at Jul 26, 2023, 11:47 AM

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Ettie

2 days ago

I think B is the correct answer. ABC includes fixed costs in the cost of inventory, which can lead to different reported profits compared to marginal costing.

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Gail

13 days ago

But ABC considers all costs, including fixed costs, so I still think B) is the correct answer.

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Marla

17 days ago

I disagree, I believe the answer is A) ignores variable costs.

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Gail

22 days ago

I think the answer is B) includes fixed costs within the cost of inventory.

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