APICS CPIM Exam - Topic 3 Question 110 Discussion

Actual exam question for APICS's CPIM exam

Question #: 110
Topic #: 3

[All CPIM Questions]

If the volume is greater than the cost equalization point, the method with the greater variable cost will cost less.

ATrue

BFalse

Show Suggested Answer

Suggested Answer: B

by Mose at Apr 09, 2025, 01:50 PM

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Sharika

6 months ago

Totally agree, variable costs can be tricky.

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Colette

7 months ago

I disagree, it seems counterintuitive.

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Brandee

7 months ago

True, that's how cost structures work.

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Donte

7 months ago

False, I think the fixed costs play a bigger role.

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Merilyn

7 months ago

Wait, really? That sounds off.

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Johnathon

7 months ago

I recall that at higher volumes, fixed costs spread out, but I can't remember if that makes the higher variable cost method cheaper.

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Jina

8 months ago

I’m a bit confused. If the volume is high, wouldn’t the method with the lower variable cost be more beneficial?

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Johanna

8 months ago

This seems similar to a practice question we did on variable costs and break-even analysis. I might lean towards "False."

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Launa

8 months ago

I think I remember something about cost equalization points, but I'm not sure how it applies here.

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I feel pretty confident about this. The key is understanding that the cost equalization point is the volume where the two methods have the same total cost. Above that point, the higher variable cost method is cheaper. Let's do this!

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Vincenza

9 months ago

Wait, I'm confused. Wouldn't the method with the lower variable cost be the cheaper one, regardless of the volume? I'm not sure about this one.

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Nadine

9 months ago

Okay, I think I've got this. If the volume is greater than the cost equalization point, the method with the higher variable cost will actually cost less. Makes sense!

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Darrin

9 months ago

I'm not sure I fully understand the question. Can someone explain the concept of a "cost equalization point" to me?

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Ellsworth

9 months ago

Hmm, this one seems a bit tricky. I'll need to think through the logic carefully.

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Denny

1 year ago

Hold up, is this a trick question? I'm going to overthink this way too much, aren't I?

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Josefa

1 year ago

B) False

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Gregg

1 year ago

Don't overthink it, just go with your gut.

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Glenna

1 year ago

A) True

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Carmen

1 year ago

But if the volume is greater than the cost equalization point, the method with the greater variable cost will cost less, so it should be True.

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Ludivina

1 year ago

I disagree, I believe the answer is B) False.

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Milly

1 year ago

This question is giving me a headache. Can we just skip it and move on to the easier ones? I need a coffee break.

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Thomasena

1 year ago

Let's take a quick coffee break and then tackle this question together.

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Ardella

1 year ago

I'm feeling the same way, let's take a break and come back to it refreshed.

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Paris

1 year ago

I agree, let's move on to the easier questions first.

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Chi

1 year ago

Sure, let's skip it and come back to it later. Coffee break sounds good!

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Carmen

1 year ago

I think the answer is A) True.

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Mickie

1 year ago

Hmm, I don't know about this one. Seems a bit counterintuitive, but I'll go with True just to be different.

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Shakira

1 year ago

User 2: I'll go with False then.

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Lorrine

1 year ago

User 1: I think it's True.

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Janine

1 year ago

I'm pretty sure the answer is False. The cost equalization point is where the fixed and variable costs are equal, so above that point the method with the lower variable cost will be cheaper.

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