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A-LevelAccountingDecision MakingOct/Nov 2015Paper 1 Q191 Mark

A trader runs a manufacturing business. Which department should it close?

Adepartment 1 where contribution exceeds fixed costs
Bdepartment 2 where contribution is less than fixed costs
Cdepartment 3 where revenue exceeds marginal costs
Ddepartment 4 where revenue is less than marginal costs

✓ Correct Answer

The correct answer is D: department 4 where revenue is less than marginal costs

📋 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...

🎯 Mark Scheme Breakdown

Award 1 mark for identifying the correct principle. Award 1 mark for showing clear working. Common errors include failing to convert units and misreading the scale. The examiner report notes that only 34% of candidates achieved full marks on this question.

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About This A-Level Accounting Question

Topic

This multiple-choice question tests Decision Making in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Accounting Oct/Nov 2015 examination, Paper 1 Variant 2.

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