Exam BA3 Topic 1 Question 285 Discussion

Actual exam question for CIMA's BA3 exam
Question #: 285
Topic #: 1
ABC manufactures vehicle engines and purchases components from a supplier Each engine requires one component costing $10 each ABC's supplier otters a 5% volume discount which has always been taken, this reduces the cost to $9.50 each. However, ABC has recorded the cost as $10 throughout the accounting system Once the correct price is recorded, what will be the effect on the factory costs incurred and the gross profit margin (GP%)?
A)

B)

C)

D)

Suggested Answer: D Vote an answer

by Julie at Feb 19, 2026, 11:04 PM

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