(a)[2]
Explain one way in which marginal costing differs from absorption costing.
(b)[2]
Explain one way in which a direct cost differs from an indirect cost.
(c(i))[1]
State the meaning of the term break-even point.
(c(ii))[1]
State the meaning of the term margin of safety.
(d)[3]
State three situations in which marginal costing can support decision-making.
(e)[3]
Calculate the break-even point in units for Aye.
(f)[3]
Calculate the break-even point in units for Bee.
(g)[5]
Calculate the revised total profit of the business if option 1 is adopted.
(h)[5]
Calculate the revised total profit of the business if option 2 is adopted.