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

Actual exam question for CIMA's CIMAPRO19-P02-1 exam
Question #: 98
Topic #: 3
[All CIMAPRO19-P02-1 Questions]

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.

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Suggested Answer: A

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

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Abraham
19 days ago
Haha, Alyce's got a point. You can't forget the caffeine and sugar fueling these information requests!
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Alyce
20 days 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
22 days 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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Yuonne
1 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
10 days ago
User1: Yeah, it helps to understand where the money is going.
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Colene
10 days ago
The cost of printing and posting the letter is a small but important factor to consider as well.
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Karl
11 days ago
It's good that they break down the costs like that.
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Pansy
13 days ago
Yes, that's crucial to ensure the cost of an information request is calculated correctly.
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Leoma
22 days ago
I think the key is to accurately track the time spent by both professional and administrative staff.
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Crista
28 days ago
I agree, the calculations make sense.
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Marisha
1 months ago
The cost of an information request is $30.20.
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Harrison
1 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
1 months ago
I agree with you, Casie. The calculation seems to make sense based on the analysis provided.
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Arthur
2 months ago
Hmm, $30.20 seems about right. The math checks out, and the breakdown of costs makes sense.
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Kathryn
1 months ago
It's interesting to see how each component contributes to the final cost of an information request.
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Lindsay
2 months ago
I agree, the breakdown of costs really helps understand how the total cost is calculated.
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Casie
2 months ago
I think the cost of an information request is $30.20.
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