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 L4M2 Exam - 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?

Show Suggested Answer Hide Answer
Suggested Answer: A

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

Limited Time Offer

25%

Off

Get Premium L4M2 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

0/2000 characters
Submit Cancel
Chau
5 months ago
Indirect costs? Nah, that doesn't fit here.
upvoted 0 times
...
Harris
5 months ago
Totally agree, they vary with production levels!
upvoted 0 times
...
Kattie
6 months ago
I thought fixed costs were more about overhead, not materials.
upvoted 0 times
...
Emogene
6 months ago
Wait, are we sure it's not fixed costs?
upvoted 0 times
...
Beckie
6 months ago
Raw materials are definitely direct costs.
upvoted 0 times
...
Colette
6 months ago
I feel like I’ve seen something similar in our study materials, and I think raw materials are definitely variable costs. So, A seems right to me.
upvoted 0 times
...
Norah
7 months ago
I’m a bit confused because I thought fixed costs were more about overheads. Could raw materials really be fixed costs?
upvoted 0 times
...
Mindy
7 months ago
I remember practicing a question about costs where direct costs were linked to production. So, I’m leaning towards option A.
upvoted 0 times
...
Mertie
7 months ago
I think raw materials are usually considered direct costs, but I'm not sure if they're variable or fixed.
upvoted 0 times
...
Essie
7 months ago
I'm a bit confused by this question. Is it asking about the specific type of raw material costs, or just the general nature of the costs being analyzed? I want to make sure I understand the context before selecting an answer.
upvoted 0 times
...
Vanna
7 months ago
Okay, let me think this through step-by-step. Direct costs are those that can be directly attributed to a product or service, while indirect costs are more general overhead. Variable costs change with production volume, while fixed costs stay the same. So I believe the answer is A - direct, variable costs.
upvoted 0 times
...
Dan
8 months ago
Hmm, I'm a bit unsure about this one. I know the difference between direct and indirect costs, but I'm not totally clear on the distinction between variable and fixed costs. I'll need to review that concept before the exam.
upvoted 0 times
...
Trinidad
8 months ago
This looks like a straightforward cost accounting question. I think the answer is A - direct, variable costs. The question mentions the focus is on raw material costs, which are typically direct and variable.
upvoted 0 times
...
Anna
11 months ago
Haha, this question is making my head spin! I'm just going to guess and hope for the best.
upvoted 0 times
Polly
10 months ago
B) Indirect, variable costs
upvoted 0 times
...
Brandon
10 months ago
A) Direct, variable costs
upvoted 0 times
...
...
Dexter
11 months ago
This is a tricky one, but I'm leaning towards D. The raw material costs are probably an indirect, fixed cost for the organization.
upvoted 0 times
...
Daren
11 months ago
I'm going with C. The raw material costs seem like they would be a direct, fixed cost as they don't change with production volume.
upvoted 0 times
Trinidad
10 months ago
User 4: I see your point, but I still think it's C. Fixed costs are more stable and predictable.
upvoted 0 times
...
Candida
10 months ago
User 3: I'm going with A too. Direct costs are directly tied to production.
upvoted 0 times
...
Kallie
11 months ago
User 2: I disagree, I believe it's C. Raw material costs are fixed and don't vary with production levels.
upvoted 0 times
...
Dolores
11 months ago
User 1: I think it's A. Raw materials are directly related to production.
upvoted 0 times
...
...
Alesia
12 months ago
I believe it's direct, fixed costs because raw materials are essential for production and their cost remains constant regardless of production volume.
upvoted 0 times
...
Brandon
12 months ago
I'm not sure, but I think it could also be indirect, variable costs depending on how the procurement manager is categorizing the expenses.
upvoted 0 times
...
Evangelina
1 year ago
I agree with Brice, because raw materials are directly related to the production process and can vary in price.
upvoted 0 times
...
Billye
1 year ago
Hmm, I'm not so sure. I was thinking it could be B since the raw material costs might be considered indirect to the final product.
upvoted 0 times
Phil
11 months ago
Clay: Maybe we should consider both A) and B) as possibilities.
upvoted 0 times
...
Nichelle
11 months ago
User 3: I believe it might be A) Direct, variable costs as well.
upvoted 0 times
...
Clay
11 months ago
User 2: I'm not so sure, I was leaning towards B) Indirect, variable costs.
upvoted 0 times
...
Delmy
11 months ago
User 1: I think it could be A) Direct, variable costs.
upvoted 0 times
...
...
Brice
1 year ago
I think the cost of raw materials would be direct, variable costs.
upvoted 0 times
...
Caitlin
1 year 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.
upvoted 0 times
Cristy
11 months ago
User 3: Yes, it changes with the level of production.
upvoted 0 times
...
Tasia
11 months ago
User 2: I agree, the cost of raw materials is a direct, variable cost.
upvoted 0 times
...
Reena
12 months ago
User 1: I think the answer is A.
upvoted 0 times
...
...

Save Cancel