CIPS L4M2 Exam - Topic 6 Question 58 Discussion

Actual exam question for CIPS's L4M2 exam

Question #: 58
Topic #: 6

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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Chau

7 months ago

Indirect costs? Nah, that doesn't fit here.

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Harris

7 months ago

Totally agree, they vary with production levels!

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Kattie

7 months ago

I thought fixed costs were more about overhead, not materials.

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Emogene

7 months ago

Wait, are we sure it's not fixed costs?

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Beckie

8 months ago

Raw materials are definitely direct costs.

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Colette

8 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.

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Norah

8 months ago

I’m a bit confused because I thought fixed costs were more about overheads. Could raw materials really be fixed costs?

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Mindy

8 months ago

I remember practicing a question about costs where direct costs were linked to production. So, I’m leaning towards option A.

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Mertie

9 months ago

I think raw materials are usually considered direct costs, but I'm not sure if they're variable or fixed.

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Essie

9 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.

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Vanna

9 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.

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Dan

9 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.

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Trinidad

9 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.

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Anna

1 year ago

Haha, this question is making my head spin! I'm just going to guess and hope for the best.

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Polly

12 months ago

B) Indirect, variable costs

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Brandon

12 months ago

A) Direct, variable costs

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Dexter

1 year 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.

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Daren

1 year 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.

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Trinidad

11 months ago

User 4: I see your point, but I still think it's C. Fixed costs are more stable and predictable.

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Candida

12 months ago

User 3: I'm going with A too. Direct costs are directly tied to production.

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Kallie

1 year ago

User 2: I disagree, I believe it's C. Raw material costs are fixed and don't vary with production levels.

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Dolores

1 year ago

User 1: I think it's A. Raw materials are directly related to production.

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Alesia

1 year ago

I believe it's direct, fixed costs because raw materials are essential for production and their cost remains constant regardless of production volume.

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