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A-LevelAccountingDecision MakingMay/June 2012Paper 1 Q231 Mark

Which statement best describes a sunk cost?

Acost which is irrelevant for the future
Bcost which must be matched against the revenue
Ccost which remains the same at all levels of production
Dcost which varies with the level of production

✓ Correct Answer

The correct answer is A: cost which is irrelevant for the future

📋 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 Decision Making in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Accounting May/June 2012 examination, Paper 1 Variant 2.

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