CIMA BA2 Question Answer
The company Andrew works for currently uses traditional absorption costing. He needs to convince his manager that the company should be using activity based costing instead.
Andrew has compiled this list of advantages:
(1)ABC will allow us to make better pricing decisions
(2)ABC will give us tighter control over costs as we will be able to pinpoint inefficiencies
(3)ABC will help improve our product mix by highlighting the best combination of materials
(4)ABC is suitable for our business as we only produce one product
Which statement or statements are INCORRECT?
CIMA BA2 Summary
- Vendor: CIMA
- Product: BA2
- Update on: Jul 29, 2025
- Questions: 392
