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Cambridge AS & A Level Accounting

2.2.4Cost-volume-profit analysis

Cost-volume-profit analysis in Cambridge AS & A Level Accounting: what the syllabus expects you to know, the learning objectives and how to practise.
Subtopic24 practice questions1 lesson
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Learning objectives

What the syllabus expects you to be able to do.

  1. 2.2.4.1Explain the advantages and limitations of cost-volume-profit analysis and its usefulness as a support for decisions (make-or-buy, special orders, closure of a unit, limiting factors, target profit).
  2. 2.2.4.2Apply costing concepts to make business decisions and recommendations using supporting data, with the significance of non-financial factors.

Lessons

  • Short-run decisions and cost-volume-profit data

    60 min

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Sample question

A sample question on this topic. Answer it, check it, then read the worked answer.

Cost-volume-profit analysis: sample question

1 mark

A business with spare capacity is deciding whether to accept a special order. Which cost should be ignored?

Choose one answer

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