A-LevelAccountingTraditional costing methods9706/12 · Oct/Nov 2018 · Q211 Mark

To make a single unit of output a business requires material costing $1000. When 20 items are produced, the total cost of the material is $20000. What best describes this cost?

Afixed cost

Bsemi variable cost

Cstepped cost

Dvariable cost

✓ Correct answer

D: variable cost

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Topic: Traditional costing methods, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Oct/Nov 2018 Paper 1 Variant 2, question 21.

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