A-LevelAccountingTraditional costing methods9706/12 · Oct/Nov 2019 · Q291 Mark

Which statements about cost-volume-profit analysis are correct? 1 Fixed costs remain constant over a range of activity. 2 Profits are calculated on an absorption costing basis. 3 Sales revenue increases in direct proportion to output. 4 There is only one product or constant sales mix.

A1 and 2 only

B1, 2, 3 and 4

C1, 3 and 4 only

D2, 3 and 4 only

✓ Correct answer

C: 1, 3 and 4 only

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Topic: Traditional costing methods, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Oct/Nov 2019 Paper 1 Variant 2, question 29.

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