CIPS Exam L4M5 Topic 13 Question 45 Discussion

Actual exam question for CIPS's L4M5 exam

Question #: 45
Topic #: 13

[All L4M5 Questions]

Absorption costing is when the total cost per each unit of output:

AIncludes an allocation towards the activity cost of its creation

BIncludes an allocation towards indirect costs used in its creation

CIncludes an allocation for a proportion of total production costs

DIncludes an allocation of producing an additional unit

Show Suggested Answer

Suggested Answer: C, E

There are many macro economic factors that could influence procurement in general and commercial negotiation in particular. Below are six factors that are agreed to be fairly significant:

* Economy growth rate

* Inflation rates

* Interest rates

* Currency exchange rate

* Unemployment rate

* Protectionism

LO 2, AC 2.2

by Arminda at Aug 08, 2023, 01:01 AM

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19 days ago

Option C seems to be the correct answer. Absorption costing includes an allocation of all production costs, both direct and indirect, to each unit of output.

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Noah

3 days ago

I think option C is correct. Absorption costing includes all production costs in each unit.

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Clare

19 days ago

I think the answer is C.

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