A-LevelAccountingTraditional costing methods9706/12 · Oct/Nov 2016 · Q241 Mark

A manufacturing business is currently operating at full capacity. As part of an expansion programme to increase production capacity, the business intends to employ an additional factory supervisor. How are total supervisory salaries classified?

Afixed cost

Bsemi-variable cost

Cstepped cost

Dvariable cost

✓ Correct answer

C: stepped cost

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Topic: Traditional costing methods, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Oct/Nov 2016 Paper 1 Variant 2, question 24.

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