A-LevelAccountingCosting for materials and labour9706/12 · Feb/Mar 2020 · Q231 Mark

Which statement is correct when production increases?

ATotal fixed costs fall.

BTotal variable costs fall.

CThe fixed cost per unit falls.

DThe variable cost per unit falls.

✓ Correct answer

C: The fixed cost per unit falls.

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Topic: Costing for materials and labour, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Feb/Mar 2020 Paper 1 Variant 2, question 23.

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