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Good day,
When completing the PM Mock Exam I came across an apparent error, where the option marked as correct doesn’t correspond to the explanation given in the Review.
The Question is:
Which of the following statements about Activity Based Costing is/are true?
1) Traditional absorption costing tends to under-allocate overhead costs to low-volume products
2) A cost driver is any factor that causes a change in the cost of an activity
Per the test, the option “Statements 1 and 2” is marked correct, however in the summary explanation, it states “Only Option 2 is correct”. It should mark “only Statement 2” as correct.
Both statements are correct.
I did correct the explanation two weeks ago to state that both statements are correct, but thank you for bringing it to my attention – I will check that admin has uploaded the corrected test.
If you are unsure as to why both statements are correct then check the following post:
https://opentuition.com/topic/pm-mock-example-question/Thanks for sharing the link. I initially misunderstood the lecture, this clears it up thank you!
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