CIPS Exam L4M5 Topic 6 Question 75 Discussion

Actual exam question for CIPS's L4M5 exam

Question #: 75
Topic #: 6

[All L4M5 Questions]

Which of the following is a disadvantage of absorption costing method?

AFixed cost allocated to products on the basis of the cost of activities used in producing them

BVariable costs are not taken into product final costs

CUsing marginal cost of producing addition units

DLimited understanding of true costs incurred

Show Suggested Answer

Suggested Answer: A

LO 2, AC 2.1

by Veronika at Nov 18, 2024, 09:40 PM

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