Business 9609 · AS & A Level · Costs

Costs — practice question

Part 1[3]

Explain one reason why break even analysis could be unsuitable for OT when deciding on the new vehicle.

Worked solution & mark scheme

This 3-mark question has a full step-by-step worked solution and mark scheme. One marking point: A detailed, context-based explanation of one limitation, for example that costs may alter for a new car so FC/VC estimates may be unreliable, or that non-financial matters such as quality/safety are important — explained in context

  • Full mark scheme, point by point
  • Step-by-step worked solution
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