CIMA Exam CIMAPRO19-P02-1 Topic 6 Question 89 Discussion

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

Question #: 89
Topic #: 6

Which of the following statements is TRUE about the activity based costing system when compared to absorption costing method?

AABC is easier to administer than an absorption costing system

BABC will be less detailed than an absorption costing system

CABC will provide more accurate overhead allocation than absorption costing

DABC will cost less to administer than an absorption costing system

Show Suggested Answer

Suggested Answer: C

by Francine at Jun 01, 2024, 03:15 AM

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Lavonda

5 months ago

Haha, forget the costing methods, I just want to know how to get the free donuts in the break room. That's the real accounting skill we should be testing!

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Gene

5 months ago

Hmm, I was torn between C and D, but I think C makes the most sense. Who needs all that absorption costing mumbo jumbo anyway?

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Herman

4 months ago

I think C is the best choice too. ABC is more efficient and cost-effective in the long run.

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Danilo

4 months ago

Yeah, absorption costing can be too complicated and less accurate. ABC is definitely the way to go.

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Ma

5 months ago

I agree, C is the correct answer. Activity based costing provides a more accurate way to allocate overhead costs.

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Bernardo

5 months ago

I agree with Tamra. ABC focuses on allocating overhead based on activities, which can lead to more accurate costs.

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Tamra

5 months ago

I think the answer is C) ABC will provide more accurate overhead allocation than absorption costing.

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Dottie

5 months ago

I agree with Natalie. ABC is definitely the way to go if you want a more precise cost allocation system.

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Natalie

5 months ago

Well, I think option C is the correct answer. ABC provides more detailed and accurate overhead allocation compared to absorption costing.

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Cassi

4 months ago

Yes, I also think option C is the best choice. ABC is designed to provide detailed and accurate overhead allocation.

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Dominic

4 months ago

I agree, option C is definitely the correct answer. ABC is known for providing more accurate overhead allocation.

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Regenia

4 months ago

Yes, I also think option C is the best choice. ABC is designed to provide detailed and accurate overhead allocation.

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Merissa

4 months ago

I agree, option C is definitely the correct answer. ABC is known for providing more accurate overhead allocation.

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Alita

5 months ago

I'm not sure about option A, but I know for sure that ABC is more detailed than absorption costing.

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Willodean

5 months ago

I think option D might also be true. ABC is usually more cost-effective to administer than absorption costing.

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Glory

5 months ago

I agree, option C is definitely the correct answer. ABC is known for providing more accurate overhead allocation.

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