A-LevelAccountingCost-Volume-Profit (CVP) AnalysisFeb/Mar 2021Paper 1 Q281 Mark

The budgeted income statement of J Limited shows the following. sales $ 400 000 variable costs 240 000 fixed costs 132 000 profit for the year 28 000 What is the margin of safety in dollars?

Q: What is the correct answer to this A-Level Accounting question?

The correct answer is A: $70000.

Q: What topic does this question test?

This question tests Cost-Volume-Profit (CVP) Analysis in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

A$70000

B$160000

C$268 000

D$330000

✓ Correct Answer

The correct answer is A: $70000

📋 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...

🎯 Mark Scheme Breakdown

Award 1 mark for identifying the correct principle. Award 1 mark for showing clear working. Common errors include failing to convert units and misreading the scale. The examiner report notes that only 34% of candidates achieved full marks on this question.

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About This A-Level Accounting Question

Topic

This multiple-choice question tests Cost-Volume-Profit (CVP) Analysis in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Accounting Feb/Mar 2021 examination, Paper 1 Variant 2.

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