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

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Kerry

9 hours 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.

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Lashaunda

11 hours ago

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

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Keith

3 days ago

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

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Meaghan

3 days ago

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

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Lindy

7 days ago

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

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Jerrod

9 days ago

A) Breakeven point

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Cordell

12 days ago

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

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