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A-LevelAccountingManagement Accounting (Cost Classification)May/June 2017Paper 1 Q241 Mark

Which statement best describes variable costs?

Acosts that are the same in total up to a certain level then increase with output
Bcosts that are the same in total over any output level
Ccosts that are constant per unit as output increases
Dcosts that increase per unit as output increases

✓ Correct Answer

The correct answer is C. This question tests the candidate's understanding of management accounting (cost classification) within the Accountingsyllabus. The examiner's mark scheme requires...

📋 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...

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About This A-Level Accounting Question

This multiple-choice question appeared in the Cambridge A-Level Accounting (9706) May/June 2017 examination, Paper 1 Variant 2. It tests the topic of Management Accounting (Cost Classification) and is worth 1 mark.

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