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Exam CSCP topic 1 question 83 discussion

Actual exam question from APICS's CSCP
Question #: 83
Topic #: 1
[All CSCP Questions]

In the analysis of costs, fixed costs are those that are:

  • A. independent of the volume of output.
  • B. dependent on the utilization of the asset.
  • C. inversely proportionate to the volume of output.
  • D. constant through the useful life of the asset.
Show Suggested Answer Hide Answer
Suggested Answer: D 🗳️

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HKG_11
Highly Voted 2 years, 3 months ago
why not option A. APICS dictionary describes fixed cost as 'An expenditure that does not vary with the production volume; for example, rent, property tax, and salaries of certain personnel.'
upvoted 11 times
piotrusl
2 years, 3 months ago
Agree. Also taxes, rent etc. can change over time described in answer D while still being fixed costs.
upvoted 2 times
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Wijitha
Most Recent 2 weeks, 1 day ago
Selected Answer: A
Fixed costs remain steadfast, regardless of the volume of operations. In logistics, they encompass expenses like warehouse rent, equipment maintenance, insurance, and administrative salaries. Taming these costs is pivotal, ensuring financial stability during highs and lows
upvoted 1 times
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Rajiv8047
3 months, 3 weeks ago
Selected Answer: A
Fixed costs are expenses that remain the same regardless of how much a business produces or sells. This means they do not fluctuate with changes in activity levels.
upvoted 1 times
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Shimis27
4 months, 4 weeks ago
Selected Answer: A
Fixed costs are costs that remain constant and do not vary with the level of production or output. They are incurred regardless of the quantity of goods or services produced. Examples of fixed costs include rent, salaries of permanent staff, insurance premiums, and depreciation of fixed assets. Option A correctly describes fixed costs as being independent of the volume of output.
upvoted 1 times
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eliemme
5 months, 2 weeks ago
Selected Answer: A
A Is correct
upvoted 1 times
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Jerawin
1 year, 1 month ago
Answer is A
upvoted 2 times
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savings_wishbone
1 year, 8 months ago
fixed cost refers to a cost that does not change with an increase or decrease in the number of goods or services produced or sold. Fixed costs are expenses that have to be paid by a company, independent of any specific business activities. This means fixed costs are generally indirect, in that they don't apply to a company's production of any goods or services. hence D
upvoted 4 times
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Cancun
2 years, 2 months ago
The answer is “A”, fixed costs remain regardless of volume.
upvoted 3 times
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A (35%)
C (25%)
B (20%)
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