CIMA Exam CIMAPRO19-P01-1 Topic 9 Question 75 Discussion

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

Question #: 75
Topic #: 9

The inventory level of Product Y has reduced by 40 units over a single period. The cost card for Product Y is as follows:

The profit for Product Y using marginal costing is $26,000.

If the company used absorption costing, what would the profit for Product Y be?

Give your answer to the nearest whole $.

A$24600

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Suggested Answer: B, D, E, G

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by Mariann at Oct 08, 2023, 02:42 AM

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Rosann

4 days ago

I can see why this question is tricky. The key is to remember that absorption costing includes fixed overhead, while marginal costing doesn't. Gotta make sure to factor that in.

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Alishia

22 days ago

I'm not sure about this. Can someone explain why absorption costing would result in a lower profit?

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Erick

23 days ago

I agree with Rosendo. Absorption costing includes fixed overhead costs, so the profit would be lower.

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Rosendo

26 days ago

I think the profit for Product Y using absorption costing would be $24,600.

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