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Exam IIA-CIA-Part3 All Questions

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Exam IIA-CIA-Part3 topic 2 question 230 discussion

Actual exam question from IIA's IIA-CIA-Part3
Question #: 230
Topic #: 2
[All IIA-CIA-Part3 Questions]

Which of the following best describes the purpose of fixed manufacturing costs?

  • A. To ensure availability of production facilities
  • B. To decrease direct expenses related to production
  • C. To incur stable costs despite operating capacity
  • D. To increase the total unit cost under absorption costing
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Suggested Answer: A 🗳️

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ZoeLee
4 months, 1 week ago
Selected Answer: A
C is not "the purpose" of fixed manufacturing costs,A is correct.
upvoted 1 times
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Elvin
5 months, 1 week ago
The purpose of fixed manufacturing costs is to incur stable costs despite operating capacity. This means that these costs remain constant regardless of the level of production. Fixed manufacturing costs include expenses such as rent for production facilities, machinery maintenance, and salaries for production staff.
upvoted 2 times
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KonradK
5 months, 3 weeks ago
Selected Answer: C
C is the right answer here. Any thoughts?
upvoted 1 times
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