ACCA Applied Knowledge (BT, MA, FA) · Management Accounting (MA)

Marginal costing

8 practice questions, each with the answer and an explanation.

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Random questions from this topic, one at a time. You see the answer and the explanation straight after each one.

All 8 questions

  1. Which statement about marginal costing is correct?
  2. A product sells for £30 per unit. Variable costs are £18 per unit and fixed costs are £48,000 per month. What is the break-even point in units?
  3. Using the same data (selling price £30, variable cost £18, fixed costs £48,000) the company expects to sell 5,000 units. What is the margin of safety as a percentage of expected sales?
  4. A company wants a profit of £30,000 per month. Selling price is £30, variable cost £18 per unit and fixed costs £48,000 per month. How many units must be sold?
  5. A company sells two products. Product X has a contribution/sales ratio of 40% and Product Y 25%. Fixed costs are £63,000. Sales are in the ratio £1 of X to £1 of Y (equal sales revenue). What is the b…
  6. A company makes 3 products with a shortage of machine hours. Product A has a contribution of £30 per unit and uses 5 machine hours; Product B £28 per unit and 2 hours; Product C £36 per unit and 4 hou…
  7. A company wants information on how often customers complain about delivery. It reads the complaints log kept by its own customer service department. What type of data is this?
  8. Which of the following is a feature of a just-in-time (JIT) purchasing system?

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