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A-LevelAccountingCosting for materials and labour9706/12 · Feb/Mar 2021 · Q211 Mark

A manufacturing company pays its production employees basic wages at the same hourly rate every week. It also pays them a bonus based on achieving production targets. What sort of cost is this an example of?

Afixed cost
Bsemi-variable cost
Cstepped cost
Dvariable cost

✓ Correct answer

B: semi-variable cost

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About this question

Topic
Costing for materials and labour, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source
A-Level Accounting, Feb/Mar 2021 Paper 1 Variant 2, question 21.

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