Marginal costing

Marginal costing focuses on which of the folllowing costs

• Fixed costs

• Indirect costs

• Total costs

• Variable costs

A business receives a contribution of £19 from a unit of output that is sold for £65. What is the variable cost of that unit?

• £19

• £84

• £46

• £65

Which of the following is not likely to be included as a marginal cost of production?

• Rent

• Raw materials

• Packaging

• Royalties

What is marginal cost if output rises from 10 units to 11 units and total cost rises from £4,000 to £4,500?

• £4,000

• 1 unit

• £500

• £4,500

Contribution per unit is ...

• Selling price plus variable cost per unit

• Selling price less variable cost per unit

• Selling price plus total cost per unit

• Selling price less total cost per unit

Marginal revenue is ...

• the cost of selling one additional unit.

• the revenue from selling all of the new quantity of units.

• the revenue from selling one additional unit.

• the cost of selling all of the new quantity of units.

Break-even in units of output is ...

• fixed cost per unit divided by total contribution.

• fixed cost per unit divided by contribution per unit.

• total fixed cost divided by total contribution.

• total fixed cost divided by contribution per unit.

Car hire is an example of a ...

• Fixed cost

• Variable cost

• Stepped cost

• Semi-variable cost

The wages of the employees making tables in a factory is an example of a ...

• Fixed cost

• Variable cost

• Stepped cost

• Semi-variable cost

The table tops used in making tables in a factory is an example of a ...

• Fixed cost

• Variable cost

• Stepped cost

• Semi-variable cost