A-LevelAccountingTraditional costing methods9706/12 · Oct/Nov 2012 · Q271 Mark

The diagram shows a break-even chart. [Figure 27.1]

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Athe break-even point revenue

Bthe margin of safety in terms of revenue

Cthe profit at break-even point

Dthe total contribution at break-even point

✓ Correct answer

B: the margin of safety in terms of revenue

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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 27.

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