A-LevelAccountingCost-Volume-Profit (CVP) AnalysisFeb/Mar 2020Paper 1 Q261 Mark
A business plans to sell all the 10000 units produced next year at the same price as this year. Direct costs are forecast to decrease by $2 per unit and total fixed costs will increase by $40000. What will be the effect of this?
Adecrease decrease
Bdecrease increase
Cincrease decrease
Dincrease increase
✓ Correct Answer
The correct answer is D. 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...
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