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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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Daren

3 days 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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Alesia

12 days 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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Brandon

14 days 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.

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Evangelina

24 days ago

I agree with Brice, because raw materials are directly related to the production process and can vary in price.

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Billye

1 months 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.

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Brice

1 months ago

I think the cost of raw materials would be direct, variable costs.

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Caitlin

1 months 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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Tasia

1 days ago

User 2: I agree, the cost of raw materials is a direct, variable cost.

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Reena

14 days ago

User 1: I think the answer is A.

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