A-LevelAccountingTraditional costing methods9706/12 · May/June 2014 · Q131 Mark

A sole trader runs a retail store. Which department is most likely to close?

Athe one with a negative contribution

Bthe one with a negative profit

Cthe one with a positive contribution

Dthe one with a positive profit

✓ Correct answer

A: the one with a negative contribution

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Topic: Traditional costing methods, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, May/June 2014 Paper 1 Variant 2, question 13.

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