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?

AVariable costs

BIndirect costs

CDirect costs

DFixed costs

Show Suggested 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, 01:42 PM

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Long

2 days ago

But what about indirect costs? They also do not vary with activity levels.

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Marsha

4 days 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.

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Wenona

4 days ago

I agree with Delisa, fixed costs do not vary with activity levels.

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Justa

9 days ago

The answer is clearly D) Fixed costs. These are the costs that don't change with the level of production or sales.

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Delisa

12 days ago

D) Fixed costs

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