A-LevelAccountingTraditional costing methods9706/12 · Feb/Mar 2016 · Q251 Mark

A particular cost is classified as 'semi-variable'. What effect will a 20% reduction in activity have on the unit cost?

Adecrease by 20%

Bdecrease by less than 20%

Cincrease by 20%

Dincrease by less than 20%

✓ Correct answer

D: increase by less than 20%

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Topic: Traditional costing methods, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Feb/Mar 2016 Paper 1 Variant 2, question 25.

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