Worldatwork Exam CECP Topic 4 Question 72 Discussion

Actual exam question for Worldatwork's CECP exam

Question #: 72
Topic #: 4

[All CECP 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: B

by Fannie at Sep 14, 2024, 01:37 PM

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Cristy

23 days ago

I agree with C. Gotta keep a tight grip on both fixed and variable costs. Can't just ignore the fixed ones just because they're 'fixed'.

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Amie

24 days ago

Haha, D is a funny one. Fixed costs can't be changed? That's like saying I can't change my monthly rent. Clearly C is the way to go - both need to be minimized.

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2 months ago

I think A is the correct answer. Fixed costs need to be monitored closely, but variable costs are more flexible and can be adjusted based on revenue.

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Ligia

2 months ago

Yes, variable costs can be adjusted to optimize revenue.

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Mabel

2 months ago

I agree, fixed costs should be minimized to improve profitability.

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Gaynell

2 months ago

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

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