Cambridge International A Level · Business (9609)

Costs: Practice Questions

5 multiple-choice questions marked as you go, and 1 written questions with worked solutions. All on Costs.

6 questions7 marksFree, no account

Question 1

1 mark

Which of the following is most likely to be classified as an indirect cost for a car manufacturing plant?

Question 2

1 mark

Which of the following is an example of a fixed cost for a manufacturing business?

Question 3

1 mark

If a business increases its selling price while variable costs and fixed costs remain constant, what is the most likely impact on the margin of safety?

Question 4

1 mark

In a large-scale bakery, which of the following would most likely be classified as a direct cost of producing a specific loaf of bread?

Question 5

1 mark

Which of the following best describes a fixed cost?

Question 6

2 marks

Define fixed costs and provide one example relevant to a manufacturing business.

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