A-LevelAccountingTraditional costing methods9706/12 · Feb/Mar 2017 · Q301 Mark

Which statements identify a disadvantage of break-even analysis? 1 It does not show the effect of changes in output on the break-even point. 2 It is assumed that all costs can be split between fixed and variable. 3 It makes it difficult to decide the profitability of a product at different levels of activity.

A1 and 2

B2 and 3

C2 only

D3 only

✓ Correct answer

C: 2 only

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Topic: Traditional costing methods, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Feb/Mar 2017 Paper 1 Variant 2, question 30.

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