A-LevelAccountingTraditional costing methods9706/12 · Feb/Mar 2020 · Q281 Mark

Which statements about cost-volume-profit analysis are correct? 1 It assumes costs and revenues behave in a linear fashion. 2 It assumes that only activity levels are uncertain. 3 It considers activity levels, marginal costs and revenues.

A1 and 2

B1 and 3

C1 only

D2 only

✓ Correct answer

C: 1 only

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Topic: Traditional costing methods, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Feb/Mar 2020 Paper 1 Variant 2, question 28.

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