A-LevelAccountingDecision MakingFeb/Mar 2017Paper 1 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
The correct answer is C. This question tests the candidate's understanding of decision making 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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