CIPS L4M2 DEFINING BUSINESS NEED EXAM 2025| BRAND NEW ACTUAL EXAM WITH 100% VERIFIED QUESTIONS AND CORRECT SOLUTIONS| GUARANTEED VALUE PACK| ACE YOUR GRADES.

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CIPS L4M2 DEFINING BUSINESS NEED EXAM
2025| BRAND NEW ACTUAL EXAM WITH 100%
VERIFIED QUESTIONS AND CORRECT
SOLUTIONS| GUARANTEED VALUE PACK| ACE
YOUR GRADES.

Fixed Cost (FC)
Costs that remain the same irrespective of business activity or volume


Variable Cost (VC)
Costs that vary with the level of output


Market Factors
Objectives
Drivers
Governance
Ownership
Commodity or Non-Commodity


Break-Even Point (BEP)
When total costs are equivalent to sales revenue (after this, it is profit)


Solving a Problem
SCAMPER

Substitute
Combine

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Adapt
Modify
Put to other uses
Eliminate
Reverse


3 Stages of the Priceberg
1. TCA
2. Maintenance
3. Disposal


Identifying Business Needs - RAQSCI
Regulatory
Availability
Quality
Service Requirements
Cost
Innovation


Direct Costs
Directly associated with the production of a good or service e.g. a
component


Indirect Costs
General running costs/Overheads

Costs not easily attributed to specific goods or services e.g. electricity


Semi-Variable Costs
Made up of fixed and variable costs