CIPS Exam L3M3 Topic 2 Question 32 Discussion

Actual exam question for CIPS's L3M3 exam

Question #: 32
Topic #: 2

[All L3M3 Questions]

What do we call the point when the supply firm makes neither a profit nor a loss ie where all costs are covered yet no profit is made?

ABreakeven point

BTrig point

CPoint of no return

DTipping point

Show Suggested Answer

Suggested Answer: B

Breakeven point. The firm breaks even: covers all of its fixed costs. At this point the firm has made neither a profit nor a loss, and hopefully is about to enter profitability.

by Joanna at Mar 19, 2025, 07:56 AM

Limited Time Offer

25%

Off

Get Premium L3M3 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Billye

2 months ago

This question is a piece of cake! The breakeven point is clearly the correct answer. I could do this in my sleep.

upvoted 0 times

Edwin

1 months ago

Exactly! It's the point where the supply firm neither makes a profit nor a loss.

upvoted 0 times

...

Nakisha

2 months ago

A) Breakeven point

upvoted 0 times

...

Winifred

2 months ago

Definitely! The breakeven point is when costs are covered but no profit is made.

upvoted 0 times

...

Dorethea

2 months ago

A) Breakeven point

upvoted 0 times

...

Kerry

3 months ago

Tipping point? I guess that's when the supply firm decides to just pack it up and call it a day. Not quite what we're looking for here.

upvoted 0 times

...

Lashaunda

3 months ago

I agree with Meaghan, A) Breakeven point makes sense.

upvoted 0 times

...

Keith

3 months ago

Point of no return? That sounds a bit dramatic. I think the breakeven point is the right answer.

upvoted 0 times

Cristina

1 months ago

Exactly, it's a crucial point for businesses to know when they will start making a profit.

upvoted 0 times

...

Rachael

1 months ago

Yeah, it's not as dramatic as the point of no return. It's just a balance between costs and revenue.

upvoted 0 times

...

Junita

2 months ago

I agree, the breakeven point is when all costs are covered but no profit is made.

upvoted 0 times

...

Meaghan

3 months ago

I think it's A) Breakeven point because that's when costs are covered.

upvoted 0 times

...

Lindy

3 months ago

Trig point? What is this, a geometry exam? I'm pretty sure that's not the correct answer here.

upvoted 0 times

...

Jerrod

3 months ago

A) Breakeven point

upvoted 0 times

...

Cordell

3 months ago

The breakeven point is where the supply firm covers all its costs, but doesn't make any profit. Simple enough, right?

upvoted 0 times

Billye

2 months ago

B) Trig point

upvoted 0 times

...

Colene

2 months ago

That's correct. The breakeven point is where costs are covered but no profit is made.

upvoted 0 times

...

Stephaine

2 months ago

A) Breakeven point

upvoted 0 times

...