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CIPS Exam L4M5 Topic 3 Question 54 Discussion

Actual exam question for CIPS's L4M5 exam
Question #: 54
Topic #: 3
[All L4M5 Questions]

Which of the following are variable costs?

Show Suggested Answer Hide Answer
Suggested Answer: C

Competing is assertive and uncooperative, a power-oriented mode. When competing, an individual pursues his or her own concerns at the other person's expense, using whatever power seems appropriate to win his or her position. Competing might mean standing up for your rights, defending a position you believe is correct, or simply trying to win. Competing will not allow long-term relationship to flourish.

Compromising is intermediate in both assertiveness and cooperativeness. When compromising, the objective is to find an expedient, mutually acceptable solution that partially satisfies both parties. Compromising falls on a middle ground between competing and accommodating, giving up more than competing but less than accommodating. Likewise, it addresses an issue more directly than avoiding but doesn't explore it in as much depth as collaborating. Compromising might mean splitting the difference, exchanging concessions, or seeking a quick middle-ground position. It is a valid approach when long-term relationships are at stake and it is important to find some common ground on which to base an agreement. Both sides get something but not everything. Therefore, this is the most appropriate for this scenario.

Avoiding is unassertive and uncooperative. When avoiding, an individual does not immediately pursue his or her own concerns or those of the other person. He or she does not address the conflict. Avoiding might take the form of diplomatically sidestepping an issue, postponing an issue until a better time, or simply withdrawing from a threatening situation. In the scenario, both parties want to take the opportunity, then avoiding is not an appropriate solution.

Accommodating is unassertive and cooperative---the opposite of competing. When accommodating, an individual neglects his or her own concerns to satisfy the concerns of the other person; there is an element of self-sacrifice in this mode. Accommodating might take the form of selfless generosity or charity, obeying another person's order when you would prefer not to, or yielding to another's point of view. In the scenario, neither party shall concede all of their requirements, it is unnecessary to adopt this approach.

LO 1, AC 1.1


Contribute your Thoughts:

Daren
14 days ago
D. Packaging is the answer. The rest are overhead costs that don't fluctuate with output. Packaging is the only one that's directly tied to the amount of goods produced.
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Ozell
26 days ago
I'm not sure about insurance. It could be a fixed cost if it's a set monthly payment.
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Francisca
29 days ago
I'm going with D. Packaging. Rent, loan repayments, and insurance are all recurring, fixed costs. Packaging can change based on production volume.
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Phil
2 days ago
I would say packaging and maybe rent could be variable costs.
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Tasia
8 days ago
I think packaging and maybe insurance could be variable costs.
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Beatriz
12 days ago
I agree with you, packaging is a variable cost.
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Bette
1 months ago
Hmm, I think D. Packaging is the only variable cost here. The others seem like fixed expenses to me.
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Micaela
1 months ago
I agree with Merlyn. Packaging costs can vary depending on how much product we need to package.
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Merlyn
1 months ago
I think packaging is a variable cost because it can change based on production levels.
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