A-LevelAccountingTraditional costing methods9706/12 · Oct/Nov 2021 · Q211 Mark

When a company produces 5000 units of a product it requires one supervisor. If production is increased beyond 5000 units then two supervisors are required. Which type of cost is this an example of?

Afixed

Bsemi-variable

Cstepped

Dvariable

✓ Correct answer

C: stepped

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Topic: Traditional costing methods, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Oct/Nov 2021 Paper 1 Variant 2, question 21.

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