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CIMA Exam CIMAPRO19-P01-1 Topic 2 Question 105 Discussion

Actual exam question for CIMA's CIMAPRO19-P01-1 exam
Question #: 105
Topic #: 2
[All CIMAPRO19-P01-1 Questions]

A company uses a standard costing system.

The company's sales budget for the latest period includes 1,500 units of a product with a selling price of $400 per unit.

The product has a budgeted contribution to sales ratio of 30%.

Actual sales for the period were 1,630 units at a selling price of $390 per unit.

The actual contribution to sales ratio was 28%.

The sales volume contribution variance for the product for the latest period is:

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Suggested Answer: A

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by Kassandra at Jan 15, 2025, 06:18 AM

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Rosendo
1 months ago
Ah, the joys of standard costing! I bet the CFO has a spreadsheet for this kind of thing. Anyway, I'm going with A) $15, 600 F. Looks like the most reasonable option to me.
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Verlene
2 months ago
I'm not quite sure about this one. I'll go with D) $32, 900 F, but I'm not feeling too confident. Maybe I should have paid more attention in class when we covered standard costing systems.
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Floyd
26 days ago
I agree with you, I also think the answer is C) $55,600 F. Standard costing can be confusing sometimes.
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Charisse
1 months ago
Don't worry, it's a tricky concept. I think the answer is actually C) $55,600 F.
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Nakisha
2 months ago
I'm not sure, but I think the answer might be C) $55,600 F because the actual contribution to sales ratio was lower than budgeted.
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Noemi
2 months ago
I agree with Carli, because the actual sales volume was higher than budgeted, resulting in a favorable variance.
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Carli
2 months ago
I think the answer is A) $15,600 F.
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Carolynn
2 months ago
Hmm, this question seems pretty straightforward. I'm going with C) $55, 600 F. The actual sales were higher than the budgeted sales, so the variance should be favorable.
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Shanice
1 months ago
So, the actual contribution to sales ratio being lower than the budgeted ratio would result in a favorable sales volume contribution variance.
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Donette
1 months ago
You're right, the contribution to sales ratio is a key factor in determining the variance.
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Wei
2 months ago
But wouldn't the variance be calculated based on the difference between the budgeted and actual contribution to sales ratio?
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Nu
2 months ago
I agree with you, C) $55, 600 F seems like the correct answer.
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Heike
2 months ago
I think the answer is B) $17, 800 F. The sales volume contribution variance is calculated by taking the difference between the actual and budgeted sales volumes, multiplied by the budgeted contribution margin.
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Hayley
2 months ago
Yes, the actual sales volume being higher than budgeted resulted in a favorable variance.
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Diane
2 months ago
That makes sense, the sales volume contribution variance is calculated using the difference in sales volumes and the contribution margin.
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Tamar
2 months ago
I agree, the answer is B) $17, 800 F.
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