A-LevelAccountingTraditional costing methods9706/12 · Feb/Mar 2016 · Q281 Mark

Which statements about cost-volume-profit analysis are correct? 1 Profits are calculated on an absorption costing basis. 2 Profits are calculated on a marginal costing basis. 3 It only applies where there is a constant sales mix. 4 It only applies where there is a changing sales mix.

A1 and 3

B1 and 4

C2 and 3

D2 and 4

✓ Correct answer

C: 2 and 3

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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 28.

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