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ScotlandAccountingQuick questions

Management Accounting

Quick questions on Marginal and absorption costing and CVP analysis - SQA Advanced Higher Accounting

2short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.

What is q1?
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Selling price is GBP 30, variable cost is GBP 18 and fixed costs are GBP 72,000. Find the break-even point in units. [3 marks]
What is q2?
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Production is 5,000 units, sales are 5,500 units and fixed overhead is absorbed at GBP 6 per unit. State which method gives the higher profit and the difference. [3 marks]

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