A-LevelAccountingDecision MakingOct/Nov 2016Paper 1 Q291 Mark
A company makes a product for which the following information is given. per unit $ selling price 100 direct materials 40 direct labour 30 Total fixed costs are $40000. Planned production is 1000 units. Which action should the company take to break-even?
Adecrease direct labour cost by 30%
Bdecrease direct material cost by 25%
Cincrease direct labour cost by 30%
Dincrease direct materials cost by 25%
✓ Correct Answer
The correct answer is B. This question tests the candidate's understanding of decision making 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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