CIMA Exam CIMAPRA17-BA2-1 Topic 2 Question 77 Discussion

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

Question #: 77
Topic #: 2

A company produces a single product for which the following cost data are available.

Analysis by the management accountant has shown that 100% of direct material cost and 50% of direct labour cost are variable costs. 50% of production overhead and 100% of selling and distribution overhead are variable costs.

What is the marginal cost per unit?

A$6

B$7

C$8

D$9

Show Suggested Answer

Suggested Answer: B

by Adaline at Aug 02, 2024, 06:34 AM

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Arlie

4 months ago

Haha, this reminds me of the time my accountant friend tried to explain marginal cost to me. I just nodded and smiled, but secretly had no idea what he was talking about. Looks like I'm not the only one struggling with this!

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Xenia

4 months ago

I agree with Jody, C) $8 makes sense when you factor in all the variable costs.

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Geraldine

4 months ago

Hmm, this is a tricky one. I'm going to go with C) $8 just to be safe. Can't be too sure with these management accounting questions!

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Arletta

2 months ago

Let's see if we can figure this out together. I think it might be D) $9.

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Lura

2 months ago

I agree with you, I also believe it's C) $8.

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Buffy

3 months ago

I'm leaning towards A) $6 as the marginal cost per unit.

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Carey

3 months ago

I think the answer is B) $7.

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Jody

4 months ago

I believe it's C) $8 because we need to consider both variable and fixed costs.

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Jordan

4 months ago

D) $9 seems more accurate to me. The variable costs add up to a higher amount than $7.

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Miss

4 months ago

Yes, $9 makes sense considering the breakdown of variable costs provided.

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Miss

4 months ago

I think you're right, $9 does seem more accurate based on the variable costs.

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Isabella

4 months ago

I think the answer is B) $7. The variable costs are made up of 100% of direct material cost and 50% of direct labor cost, plus 50% of production overhead and 100% of selling and distribution overhead.

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