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.
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)- A12% (4)
- B6% (2)
- C3% (1)
- D79% (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.
$453.635 corresponds to a different company or scenario pairing in the reference data, not the Scenario 2 increased cost specific to Company C.
$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.
$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.
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
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