CIMA Exam CIMAPRA17-BA2-1 Topic 1 Question 73 Discussion

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

Question #: 73
Topic #: 1

A company that uses standard costing wishes to reconcile the difference between the profit for a period calculated using absorption costing with that calculated using marginal costing.

Which TWO of the following will NOT help with this reconciliation? (Choose two.)

AThe actual fixed production overheads.

BThe closing inventory.

CThe opening inventory.

DThe under or over absorbed fixed production overheads.

EThe fixed production overhead absorption rate.

Show Suggested Answer

Suggested Answer: A, E

by Lauran at Jun 20, 2024, 06:50 PM

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Cathrine

5 months ago

Ah, the age-old battle between absorption and marginal costing. I bet the accountants are having a field day with this one!

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Kiley

3 months ago

C) The opening inventory.

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Karol

3 months ago

B) The closing inventory.

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Emerson

4 months ago

A) The actual fixed production overheads.

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Tuyet

4 months ago

C: The fixed production overhead absorption rate.

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Therese

4 months ago

B: The under or over absorbed fixed production overheads.

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Sue

4 months ago

A: The closing inventory and the opening inventory.

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Shaniqua

5 months ago

I see your point, Colton. The fixed production overhead absorption rate is also crucial in understanding the difference between the two costing methods.

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Colton

5 months ago

I believe the actual fixed production overheads and the under or over absorbed fixed production overheads are more important for reconciliation.

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Margarett

5 months ago

Hmm, I was about to say the fixed production overhead absorption rate, but then I realized that would actually help with the reconciliation. Better not overthink this one!

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Margery

4 months ago

B) The closing inventory.

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Leandro

5 months ago

A) The actual fixed production overheads.

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Graham

5 months ago

The under or over absorbed fixed production overheads seem like the key item here. That's where the difference between the two costing methods really comes into play.

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Francoise

5 months ago

Wow, this is a tricky one! I'm pretty sure the opening and closing inventory values are crucial for reconciling the profits under the two costing methods.

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Rebecka

4 months ago

D) The under or over absorbed fixed production overheads.

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Mona

4 months ago

C) The opening inventory.

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Josephine

4 months ago

B) The closing inventory.

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Nieves

5 months ago

A) The actual fixed production overheads.

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Keshia

5 months ago

I agree with Julian. The closing and opening inventory are not relevant to the difference between absorption and marginal costing.

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The actual fixed production overheads and the fixed production overhead absorption rate are definitely not needed for this reconciliation. Those are more relevant for the standard costing process itself.

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Elly

5 months ago

E) The fixed production overhead absorption rate.

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Suzi

5 months ago

A) The actual fixed production overheads.

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Julian

6 months ago

I think the closing inventory and the opening inventory will not help with the reconciliation.

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CIMA Exam CIMAPRA17-BA2-1 Topic 1 Question 73 Discussion

Contribute your Thoughts:

Cathrine

Kiley

Karol

Emerson

Tuyet

Therese

Sue

Shaniqua

Colton

Margarett

Margery

Leandro

Graham

Francoise

Rebecka

Mona

Josephine

Nieves

Keshia

Roslyn

Elly

Suzi

Julian