Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions
Mail Us support@pass4success.com
Location US
Mob_nav_barsMENU

CIPS Exam L3M3 Topic 3 Question 25 Discussion

Actual exam question for CIPS's L3M3 exam
Question #: 25
Topic #: 3
[All L3M3 Questions]

What is the name given to costs which do not vary as activity levels in a business increase or de-crease?

Show Suggested Answer Hide Answer
Suggested Answer: C

Political.

It's a close-run thing with economic, but the reference to 'stability of governing regimes' clinches if for 'political'.


by Jennifer at Oct 18, 2024, 02:42 PM

Limited Time Offer

25%

Off

Get Premium L3M3 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel
Launa
4 months ago
D) Fixed costs is the way to go. I'm not going to let these tricky accounting terms trip me up. Bring on the next question!
upvoted 0 times
Wilson
3 months ago
Yes, fixed costs are like rent or salaries that stay the same no matter how much we produce.
upvoted 0 times
...
Krissy
3 months ago
I agree, fixed costs are costs that remain constant regardless of activity levels.
upvoted 0 times
...
Stefanie
4 months ago
Fixed costs is the way to go. I'm not going to let these tricky accounting terms trip me up. Bring on the next question!
upvoted 0 times
...
...
Ahmad
4 months ago
Haha, I bet the person who wrote this question is a real comedian. They must have been thinking, 'Let's see if they can figure out the difference between fixed and variable costs!' Well, I'm ready for the punchline - D) Fixed costs.
upvoted 0 times
Taryn
3 months ago
Good job!
upvoted 0 times
...
Jesus
3 months ago
I knew that one!
upvoted 0 times
...
Gearldine
3 months ago
That's correct!
upvoted 0 times
...
Markus
3 months ago
Fixed costs
upvoted 0 times
...
...
Long
4 months ago
But what about indirect costs? They also do not vary with activity levels.
upvoted 0 times
...
Marsha
5 months ago
Hmm, I was torn between B) Indirect costs and D) Fixed costs, but I think D) is the correct answer. Fixed costs, like rent and insurance, stay the same regardless of how much you produce.
upvoted 0 times
Hyun
3 months ago
Yes, fixed costs are expenses that do not change with the level of production.
upvoted 0 times
...
Val
4 months ago
I agree, fixed costs are the ones that stay the same no matter what.
upvoted 0 times
...
...
Wenona
5 months ago
I agree with Delisa, fixed costs do not vary with activity levels.
upvoted 0 times
...
Justa
5 months ago
The answer is clearly D) Fixed costs. These are the costs that don't change with the level of production or sales.
upvoted 0 times
Omer
3 months ago
Exactly, they stay the same whether you produce a lot or a little.
upvoted 0 times
...
Raul
4 months ago
So, fixed costs are like rent and salaries, right?
upvoted 0 times
...
Rasheeda
4 months ago
I agree, fixed costs remain constant regardless of activity levels.
upvoted 0 times
...
Antonette
4 months ago
I think the answer is D) Fixed costs.
upvoted 0 times
...
...
Delisa
5 months ago
D) Fixed costs
upvoted 0 times
...

Save Cancel