A-LevelAccountingCostingOct/Nov 2010Paper 1 Q271 Mark
A factory produces a product with a variable cost of $0.60 per unit. Fixed costs are $15 000 per quarter, including rent of $6000 per quarter. If more than 20 000 units are made per quarter, additional space is required which increases the rent by 50%. What is the total cost per unit of producing 30 000 units in a quarter?
A$0.60
B$0.90
C$1.10
D$1.20
✓ Correct Answer
The correct answer is D. This question tests the candidate's understanding of costing 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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