A-LevelAccountingTraditional costing methods9706/12 · Oct/Nov 2012 · Q251 Mark

A business employs machinists to make children's sunhats. As demand increases more machinists are employed. Every time eight extra machinists are employed, one extra supervisor is needed. How are total labour costs best described?

Afixed variable

Bstepped variable

Cvariable fixed

Dvariable stepped

✓ Correct answer

D: variable stepped

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Topic: Traditional costing methods, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Oct/Nov 2012 Paper 1 Variant 2, question 25.

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