A-LevelAccountingTraditional costing methods9706/12 · May/June 2013 · Q241 Mark

A company has ordered a new machine, to be delivered in six months. In the short term, the machine hours will be a limiting factor. It has made the following calculations. [Table: product X, product Y, product Z with contribution per unit made and machine hours used per unit] What will be the most profitable ranking order for production?

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AX → Y → Z

BX → Z → Y

CY → Z → X

DZ → Y → X

✓ Correct answer

C: Y → Z → X

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Topic: Traditional costing methods, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, May/June 2013 Paper 1 Variant 2, question 24.

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