A-LevelAccountingTraditional costing methods9706/12 · Oct/Nov 2025 · Q301 Mark

What are the limitations of cost-volume-profit analysis? 1 It assumes fixed costs will remain constant. 2 It cannot be used if multiple products are produced in a constant mix. 3 It ignores the possibility of semi-variable costs.

A1, 2 and 3

B1 and 2 only

C1 and 3 only

D2 and 3 only

✓ Correct answer

C: 1 and 3 only

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Topic: Traditional costing methods, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Oct/Nov 2025 Paper 1 Variant 2, question 30.

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