What this practice covers
These questions are drawn from past CIE 9706 Accounting papers and filtered to cost-volume-profit analysis. 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 cost-volume-profit analysis, taken from our own topic notes. Read them before you practise and you will recognise the traps in the questions.
- Dividing fixed costs by the selling price instead of by the contribution.
- Using the C/S ratio and reporting the answer in units, or the reverse.
- Drawing the revenue line from the fixed cost level rather than from the origin.
- Starting the profit-volume line at zero instead of at minus the fixed costs.
- Saying break-even falls when sales volume rises.
- Listing assumptions without saying why each one limits the technique.
- Forgetting to add the target profit to fixed costs before dividing.
Revise it first
If any of the above is unfamiliar, work through the notes before practising: Cost-volume-profit analysis revision notes.