CIMA Exam CIMAPRO19-P02-1 Topic 3 Question 98 Discussion

Actual exam question for CIMA's CIMAPRO19-P02-1 exam

Question #: 98
Topic #: 3

A firm of accountants uses an activity-based costing system. The firm's costing system permits staff to indicate specific tasks undertaken for clients, such as requesting missing information. The amount charged for a request for missing information is based on the following analysis.

Each request takes an average of 15 minutes of professional staff time. Professional staff are charged out at $100 per hour.

Administrators then process the information request and prepare a standard letter. The average time administration staff spend on each information request is 20 minutes. The cost of administration staff at the firm is $75,600 per year. Administration staff work for a total of 6,000 hours per year. The cost of printing and posting a letter is $1.

Calculate the cost of an information request.

Give your answer to 2 decimal places.

A$30.20

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Suggested Answer: A

by Josphine at Sep 13, 2024, 06:36 PM

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Abraham

5 months ago

Haha, Alyce's got a point. You can't forget the caffeine and sugar fueling these information requests!

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Alyce

5 months ago

Wait, did they factor in the cost of coffee and donuts for the staff? That's a crucial overhead expense!

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Ria

5 months ago

I'm not convinced the $1 cost for printing and posting is accurate. Shouldn't that be higher in today's world?

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Kate

4 months ago

Yeah, the main cost comes from the professional staff time and the administration staff time, which are charged at higher rates.

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Marjory

4 months ago

Even if the cost is higher in today's world, it's still a small part of the overall cost of the information request.

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Janet

4 months ago

I agree, it's just a basic letter. The cost is probably kept low to make it more affordable for clients.

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Ivory

4 months ago

I think the $1 cost for printing and posting is accurate. It's a standard letter, so it shouldn't be too expensive.

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Yuonne

6 months ago

I agree with the $30.20 answer. The time and cost estimates for the professional and administrative staff seem reasonable.

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Margart

5 months ago

User1: Yeah, it helps to understand where the money is going.

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Colene

5 months ago

The cost of printing and posting the letter is a small but important factor to consider as well.

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Karl

5 months ago

It's good that they break down the costs like that.

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Pansy

5 months ago

Yes, that's crucial to ensure the cost of an information request is calculated correctly.

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Leoma

5 months ago

I think the key is to accurately track the time spent by both professional and administrative staff.

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Crista

5 months ago

I agree, the calculations make sense.

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Marisha

5 months ago

The cost of an information request is $30.20.

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Harrison

6 months ago

I'm not sure about the answer. I need to double-check the calculations before I can agree.

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Tomas

6 months ago

I agree with you, Casie. The calculation seems to make sense based on the analysis provided.

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Arthur

6 months ago

Hmm, $30.20 seems about right. The math checks out, and the breakdown of costs makes sense.

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Kathryn

6 months ago

It's interesting to see how each component contributes to the final cost of an information request.

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Lindsay

6 months ago

I agree, the breakdown of costs really helps understand how the total cost is calculated.

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Casie

6 months ago

I think the cost of an information request is $30.20.

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