A-LevelAccountingTraditional costing methods9706/12 · May/June 2011 · Q281 Mark

Which graph shows the fixed cost per unit produced in a manufacturing process?

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AGraph A: fixed cost per unit decreases as quantity produced increases

BGraph B: fixed cost per unit is constant as quantity produced increases

CGraph C: fixed cost per unit increases as quantity produced increases from a positive intercept

DGraph D: fixed cost per unit increases as quantity produced increases from the origin

✓ Correct answer

A: Graph A: fixed cost per unit decreases as quantity produced increases

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Topic: Traditional costing methods, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, May/June 2011 Paper 1 Variant 2, question 28.

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