Worldatwork Exam c8 Topic 2 Question 49 Discussion

Actual exam question for Worldatwork's c8 exam

Question #: 49
Topic #: 2

[All c8 Questions]

Regarding fixed and variable costs, what are Finance's primary concerns?

AFixed costs must be kept to a minimum, but variable costs can fluctuate since they tend to correlate with revenue.

BVariable costs often have a heavier focus than fixed costs, which applies to all areas, including compensation.

CFixed costs and variable costs are equally important and both should be kept to a minimum.

DFixed costs are not a concern because they cannot be changed, so the focus is primarily on variable costs.

Show Suggested Answer

Suggested Answer: C

by Pete at Mar 22, 2023, 01:27 AM

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Jerry

1 months ago

Option A makes the most sense. You can't ignore fixed costs, but variable costs are where you can really make an impact on the bottom line.

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Victor

3 days ago

Fixed costs are important too, but they are more difficult to change.

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Joana

10 days ago

I agree, variable costs are more flexible and can be adjusted to improve profitability.

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Keith

1 months ago

Haha, option C is like saying 'just minimize everything and call it a day!' That's not how finance works, my friend.

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Marjory

User 3: Yeah, we need to find a balance between the two.

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Glory

16 days ago

User 2: I agree, but variable costs can fluctuate based on revenue.

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Carmela

21 days ago

User 1: I think option A makes sense, we need to keep fixed costs low.

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Salina

1 months ago

I'm going with option D. Fixed costs are largely out of our control, so we should concentrate on managing the variable costs.

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Izetta

3 days ago

It's important to keep an eye on variable costs since they can directly impact our bottom line. Option D seems like the right approach.

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Linsey

5 days ago

I agree, variable costs are more flexible and can be adjusted to help improve our financial situation.

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Lindsey

6 days ago

Option D is a good choice. We can't really do much about fixed costs, so focusing on variable costs makes sense.

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Haydee

2 months ago

Option B seems more accurate to me. Variable costs are generally the primary focus, as they have a greater impact on profitability.

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Osvaldo

8 days ago

User 3: It's important to keep a close eye on those variable costs for sure.

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Dannie

14 days ago

User 2: Yes, they can really affect the bottom line more than fixed costs.

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Garry

18 days ago

User 1: I agree, variable costs are usually the main concern for Finance.

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Jacquelyne

2 months ago

I think option A is the correct answer. Fixed costs need to be carefully managed, but variable costs are more flexible and can fluctuate with revenue.

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Latricia

1 months ago

User 2: Yes, variable costs can be adjusted based on revenue.

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Regenia

2 months ago

User 1: I agree, fixed costs must be minimized.

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Louisa

2 months ago

I believe variable costs are just as important. They can fluctuate with revenue, so managing them effectively is crucial for financial success.

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Art

2 months ago

I agree with Vesta. Fixed costs can be more difficult to adjust, so it makes sense to focus on minimizing them.

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Vesta

2 months ago

I think Finance's primary concern is to keep fixed costs to a minimum.

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