A-LevelAccountingTraditional costing methods9706/12 · May/June 2010 · Q291 Mark

The graphs show projected sales and cost information for products X and Y.

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AProduct X breaks even at a higher number of units sold than product Y.

BProduct X has lower fixed costs than product Y.

CProduct X has a lower selling price per unit than product Y.

DProduct X has a lower variable cost per unit than product Y.

✓ Correct answer

D: Product X has a lower variable cost per unit than product Y.

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Topic: Traditional costing methods, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, May/June 2010 Paper 1 Variant 2, question 29.

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