A-LevelAccountingTraditional costing methods9706/12 · May/June 2019 · Q231 Mark

A shortage caused a business to pay more for its purchases of raw materials. What is the effect of this? | | break-even point | marginal cost | contribution | |:---|:---|:---|:---| | A | decrease | decrease | increase | | B | decrease | decrease | decrease | | C | increase | decrease | increase | | D | increase | increase | decrease |

Adecrease decrease increase

Bdecrease decrease decrease

Cincrease decrease increase

Dincrease increase decrease

✓ Correct answer

D: increase increase decrease

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Topic: Traditional costing methods, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, May/June 2019 Paper 1 Variant 2, question 23.

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