◈ Oracle PrepSign Up Free
A-LevelAccountingTraditional costing methods9706/12 · May/June 2024 · Q271 Mark

A company has a positive margin of safety. How did this arise?

AActual sales are greater than break-even sales.
BActual sales are greater than budgeted sales.
CBreak-even sales are greater than actual sales.
DBudgeted sales are greater than actual sales.

✓ Correct answer

A: Actual sales are greater than break-even sales.

Practise more questions on this topic

Oracle Prep sorts past-paper questions by topic, so you can drill Traditional costing methods and see which topics are most likely to come up next.

Sign up free →

About this question

Topic
Traditional costing methods, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source
A-Level Accounting, May/June 2024 Paper 1 Variant 2, question 27.

Questions and mark schemes are from past examination papers and remain the copyright of the exam board. How Oracle Prep builds its content

Related Accounting questions

Traditional costing methodsFeb/Mar 20181m

Which business would use a job costing system of accounting?

Traditional costing methodsFeb/Mar 20181m

Which statements about absorption costing are correct? 1 It can be used as a basis for calculating the selling price …

Traditional costing methodsFeb/Mar 20181m

How is the margin of safety calculated?

Reconciliation and verificationFeb/Mar 20161m

The trial balance totals are as follows: debit $500 150 credit $500 000 Which error could have caused the difference?

Preparation of financial statementsFeb/Mar 20161m

A business maintains a provision for doubtful debts of 5% per annum. It has trade receivables balances of $560000 at …

Analysis and communication of accounting informationFeb/Mar 20161m

The statement of the financial position of a company shows the following: $ tangible non-current assets 20 600 intang…

← Browse all past-paper questions

© 2026 Oracle Prep