CIPS Exam L3M5 Topic 1 Question 7 Discussion

Actual exam question for CIPS's L3M5 exam

Question #: 7
Topic #: 1

[All L3M5 Questions]

Approximately what percentage of costs, of running heavy goods vehicles (HGVs), is accounted for by fuel costs?

A33%

B20%

C51%

D7%

Show Suggested Answer

Suggested Answer: B

The correct answer is roughly one-third, or 33%.

This means that fuel costs are very important to road haulage firms, and alternative means of either transportation or power for trucks would be desirable, both to reduce costs and to aid the environ-ment.

Using your learning and your experience, what do you think the other main costs are of running a heavy goods vehicle fleet? I'll leave you to come up with some of the key areas yourself.

(L3M6)

by Tiffiny at Apr 10, 2024, 07:02 AM

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Clement

4 months ago

True, but I still think there are other factors that need to be considered when calculating the percentage of costs.

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Reita

4 months ago

That's a valid point, but fuel consumption is usually the largest expense for HGV operators.

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Reena

4 months ago

I believe it's 20% because fuel prices can fluctuate and affect the overall percentage.

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Clement

5 months ago

I would say it's 33% because other costs like maintenance and insurance also play a big role.

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Reita

5 months ago

I think it's around 51% because fuel costs are a significant part of running HGVs.

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Yvonne

5 months ago

Exactly, it's a substantial cost for companies operating HGVs

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Blossom

5 months ago

Yeah, I guess it makes sense considering the size of the vehicles and the amount of fuel they need

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Rikki

5 months ago

Oh really? That's surprising, I thought it would be higher

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Yvonne

6 months ago

I've heard that the correct answer is C) 51%

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Blossom

6 months ago

I disagree, I believe it's B) 20%

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Rikki

6 months ago

I think it's A) 33%

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Mitsue

7 months ago

Ha, future HGVs with jetpacks and hoverboards! Now that would be something. But in all seriousness, I'm leaning towards option C as well. Fuel is just such a huge part of the equation for these heavy vehicles.

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Carma

7 months ago

Option B, 20%, seems way too low. I mean, come on, fuel has to be a much bigger portion of the overall costs, right? Unless we're talking about some super-efficient future HGVs or something.

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Franklyn

7 months ago

I don't know, 51% seems a bit high to me. I was thinking more along the lines of 33%, which is option A. But I'm definitely open to other perspectives on this.

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Beatriz

7 months ago

I'm leaning towards option C, 51%. Fuel prices have been pretty high lately, and it's a key component of running heavy vehicles. Though I could be wrong, I feel like that's a reasonable estimate.

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Lizette

7 months ago

Yeah, I agree. I was thinking maybe somewhere in the 30-40% range as well. Fuel is a major expense for HGV operators, but there are other significant costs like maintenance, insurance, and driver wages.

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Krystal

7 months ago

Hmm, this seems like a tricky question. I would have guessed around 30-40% for fuel costs, but I'm not too sure. What do you all think?

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Carissa

6 months ago

I believe it's 51%, option C.

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Jesus

6 months ago

I think it's around 33%, option A.

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