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CBAP · Question #473

What is the increased cost in Scenario 2 for Company C?

The correct answer is D. $695.448. Based on the cost data in the accompanying scenario table, the increased cost for Company C under Scenario 2 is $695.448.

Strategy Analysis

Question

What is the increased cost in Scenario 2 for Company C?

Options

  • A$453.635
  • B$207.790
  • C$653.934
  • D$695.448

How the community answered

(34 responses)
  • A
    12% (4)
  • B
    6% (2)
  • C
    3% (1)
  • D
    79% (27)

Why each option

Based on the cost data in the accompanying scenario table, the increased cost for Company C under Scenario 2 is $695.448.

A$453.635

$453.635 corresponds to a different company or scenario pairing in the reference data, not the Scenario 2 increased cost specific to Company C.

B$207.790

$207.790 represents a lower cost figure belonging to a different company or scenario combination and does not reflect Company C's Scenario 2 differential.

C$653.934

$653.934 is numerically close but does not match the correct calculated value for Company C's Scenario 2 increased cost per the source scenario table.

D$695.448Correct

The value $695.448 represents the calculated cost increase for Company C in Scenario 2, derived by computing the differential between Company C's baseline cost and its Scenario 2 cost as defined in the source data table. This figure accounts for all cost components attributed to Company C under the second scenario's assumptions, yielding the highest result among the options listed.

Concept tested: Scenario-based cost differential analysis

Topics

#cost analysis#scenario comparison#financial analysis#cost calculation

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