CIPS Exam L4M2 Topic 6 Question 58 Discussion

Actual exam question for CIPS's L4M2 exam

Question #: 58
Topic #: 6

[All L4M2 Questions]

A manufacturing organisation has initiated a project focusing on costs, with a view to making significant savings. A procurement manager is leading the project. The initial data sources have focused on the cost of raw materials. Which of the following describes this cost?

ADirect, variable costs

BIndirect, variable costs

CDirect, fixed costs

DIndirect, fixed costs

Show Suggested Answer

Suggested Answer: A

by Marjory at May 04, 2025, 12:30 AM

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Caitlin

5 days ago

I think the answer is A. The cost of raw materials is a direct, variable cost since it changes with the level of production.

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