Accounting Multiple Choice Question – 13 December 2021

A particular cost is classified as ‘semi-variable’.

Which effect will a 20% reduction in activity have on the unit cost?

Select ONE answer:

1. decrease by 20%
2. decrease by less than 20%
3. increase by 20%
4. increase by less than 20%

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct

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