Day: March 15, 2023

The cost of producing 2,000 units of a product is shown below:

• Insurance – £2k
• Labour – £30k
• Materials – £10k
• Rent – £6k
• telephone rental – £4k

What is the variable cost of one unit?

Select ONE answer:

1. £20
2. £22
3. £23
4. £24

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 1

1. Correct – 30K + 10K = 40k / 2,000 units = £20 per unit
2. Not correct
3. Not correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.