A-LevelAccountingCosting for materials and labour9706/12 · Oct/Nov 2024 · Q231 Mark

A business employs machinists to make a single type of product. As demand increases, more machinists are employed. Every time eight extra machinists are employed, one extra supervisor is needed. Which option best describes total labour costs?

Afixed; variable

Bstepped; variable

Cvariable; fixed

Dvariable; stepped

✓ Correct answer

D: variable; stepped

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Topic: Costing for materials and labour, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Oct/Nov 2024 Paper 1 Variant 2, question 23.

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