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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, 01:42 PM

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Launa
2 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!
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Wilson
3 days ago
Yes, fixed costs are like rent or salaries that stay the same no matter how much we produce.
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Krissy
5 days ago
I agree, fixed costs are costs that remain constant regardless of activity levels.
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Stefanie
1 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!
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Ahmad
2 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.
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Taryn
2 days ago
Good job!
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Jesus
14 days ago
I knew that one!
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Gearldine
21 days ago
That's correct!
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Markus
29 days ago
Fixed costs
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Long
2 months ago
But what about indirect costs? They also do not vary with activity levels.
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Marsha
2 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.
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Hyun
26 days ago
Yes, fixed costs are expenses that do not change with the level of production.
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Val
2 months ago
I agree, fixed costs are the ones that stay the same no matter what.
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Wenona
2 months ago
I agree with Delisa, fixed costs do not vary with activity levels.
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Justa
2 months 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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Omer
28 days ago
Exactly, they stay the same whether you produce a lot or a little.
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Raul
1 months ago
So, fixed costs are like rent and salaries, right?
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Rasheeda
1 months ago
I agree, fixed costs remain constant regardless of activity levels.
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Antonette
1 months ago
I think the answer is D) Fixed costs.
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Delisa
2 months ago
D) Fixed costs
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