What this practice covers
These questions are drawn from past CIE 9706 Accounting papers and filtered to classification and behaviour of costs. You answer, you find out immediately whether you were right, and you get the reasoning for the correct option and for each distractor. Wrong answers go to a mistakes locker so you can come back to exactly those.
Practice is free. You need an account only so your progress and your mistakes are still there next time.
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What examiners see students get wrong here
These are the errors that cost marks on classification and behaviour of costs, taken from our own topic notes. Read them before you practise and you will recognise the traps in the questions.
- Saying fixed costs are constant per unit, or that variable costs are constant in total.
- Calling every material cost direct.
- Forgetting that classifications depend on the purpose, so one cost can be direct for a department and indirect for a unit.
- Using an output level other than the true highest and lowest in the high-low method.
- Finding the variable cost and stopping, without substituting back for the fixed element.
- Including a sunk cost in a decision.
- Ignoring the relevant range when saying a fixed cost never changes.
Revise it first
If any of the above is unfamiliar, work through the notes before practising: Classification and behaviour of costs revision notes.