A-LevelAccountingCost-Volume-Profit (CVP) AnalysisOct/Nov 2025Paper 1 Q271 Mark
What is the correct definition of margin of safety in dollars?
Athe amount by which sales revenue exceeds total fixed and variable costs
Bthe amount by which sales revenue exceeds total marginal costs
Cthe amount by which sales revenue could fall before the break-even point is reached
Dthe total fixed costs divided by contribution per unit sold
✓ Correct Answer
The correct answer is C. This question tests the candidate's understanding of cost-volume-profit (cvp) analysis within the Accountingsyllabus. The examiner's mark scheme requires...
📋 Examiner Report & Trap Analysis
Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...
🔒
Unlock the Examiner's Answer
Sign up for free to reveal the correct answer, the official mark scheme breakdown, and the examiner trap analysis for this question.
Sign Up Free to Unlock →Join thousands of Cambridge students already using Oracle Prep