Accounting 9706 · AS & A Level · Costs and cost behaviour

Costs and cost behaviour — practice question

A shortage led a business to pay more for its raw material purchases. What effect would this have?

  • Abreak-even point decrease; marginal cost decrease; contribution increase
  • Bbreak-even point decrease; marginal cost decrease; contribution decrease
  • Cbreak-even point increase; marginal cost decrease; contribution increase
  • Dbreak-even point increase; marginal cost increase; contribution decrease

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