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Costing and Break-Even Analysis · CAPE Management of Business Unit 2

15 past-paper questions on Costing and Break-Even Analysis, part of Module 1: Production and Operations Management, from every CAPE Management of Business Unit 2 paper on Quelpr.

Practise Costing and Break-Even Analysis
  1. 2(a)(i)2 marks· CAPE Management of Business Unit 2 · 2011 (Specimen) · Paper 2Using the sales level of 100 units, calculate the contribution per unit.
  2. 2(a)(ii)3 marks· CAPE Management of Business Unit 2 · 2011 (Specimen) · Paper 2Using the sales level of 100 units, calculate the total cost.
  3. 2(a)(iii)3 marks· CAPE Management of Business Unit 2 · 2011 (Specimen) · Paper 2Using the sales level of 100 units, calculate total profits using marginal costing format.
  4. 2(b)(i)5 marks· CAPE Management of Business Unit 2 · 2011 (Specimen) · Paper 2With the use of a labelled diagram, illustrate the breakeven point of the firm.
  5. 2(b)(ii)a)2 marks· CAPE Management of Business Unit 2 · 2011 (Specimen) · Paper 2Determine the number of units required for the firm to break even.
  6. 2(b)(ii)b)2 marks· CAPE Management of Business Unit 2 · 2011 (Specimen) · Paper 2Determine the amount of sales required for the firm to break even.
  7. 2(b)(iii)2 marks· CAPE Management of Business Unit 2 · 2011 (Specimen) · Paper 2On the same diagram in (b)(i), indicate the margin of safety. State the importance of knowing the margin of safety.
  8. 2(c)(i)4 marks· CAPE Management of Business Unit 2 · 2011 (Specimen) · Paper 2The firm is considering purchasing widgets at $30 each instead of manufacturing them, leaving the factory idle. Advise the firm as to a course of action.
  9. 2(c)(ii)2 marks· CAPE Management of Business Unit 2 · 2011 (Specimen) · Paper 2State TWO non-accounting factors which the firm must take into consideration when making its decision to buy rather than manufacture.
  10. 2(a)4 marks· CAPE Management of Business Unit 2 · 2016 · Paper 2Differentiate between 'direct costs' and 'indirect costs'.
  11. 2(b)9 marks· CAPE Management of Business Unit 2 · 2016 · Paper 2Explain THREE factors that Edwards' Air Conditioning should consider in determining whether to make or buy the manufacturing component.
  12. 2(c)12 marks· CAPE Management of Business Unit 2 · 2016 · Paper 2Discuss THREE reasons why it is important for Edwards' Air Conditioning to keep its production cost at a manageable level.
  13. 1(a)(i)2 marks· CAPE Management of Business Unit 2 · 2018 · Paper 2Define the term 'indirect cost'.
  14. 1(c)12 marks· CAPE Management of Business Unit 2 · 2018 · Paper 2Discuss THREE ways in which the business could reduce the rising indirect operating costs.
  15. 1(c)12 marks· CAPE Management of Business Unit 2 · 2021 · Paper 2Discuss THREE ways in which outsourcing may be disadvantageous to WFM.

Related topics in Module 1: Production and Operations Management