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CIPS L3M3 Exam - Topic 1 Question 54 Discussion

'Profit is not a cost'. True or false?
A) True
B) False

CIPS L3M3 Exam - Topic 1 Question 54 Discussion

Actual exam question for CIPS's L3M3 exam
Question #: 54
Topic #: 1
[All L3M3 Questions]

'Profit is not a cost'. True or false?

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Suggested Answer: A

This is true. Profit is what is left over after you've covered all your costs. In simple terms.


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Felicitas
4 days ago
I'm a bit confused because some definitions of costs include opportunity costs, which might relate to profit. Is that what they mean?
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Moon
9 days ago
I remember a practice question where we discussed costs and revenues, and profit was definitely not included in costs. So I would lean towards true.
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Adela
15 days ago
I think profit is considered a return on investment, so it shouldn't be classified as a cost. But I'm not entirely sure.
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