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Financial Performance AAT Practice Paper 4

AATnoviceAATnovice Feels At HomeRegistered Posts: 46
Hi Everyone,

could anyone help me with task 2.2D?

it is the marginal cos per unit?

Thank you in advance

Comments

  • NpsNps Experienced Mentor Registered Posts: 782
    Am I looking at the right question? Part D is the question asking you to pick all the statements which are correct, not a marginal cost per unit?
  • AATnoviceAATnovice Feels At Home Registered Posts: 46
    Hi Nps

    i am looking at paper 4 task 2.2 part D

    it is one of the practice papers on the aat website

    thank you
  • NpsNps Experienced Mentor Registered Posts: 782
    Me too, but it's not asking for a marginal cost per unit. It's asking you to pick the correct statements about contributions etc. is that the one you mean?
  • AATnoviceAATnovice Feels At Home Registered Posts: 46
    sorry Nps its B

    Feel so silly now

    sorry
  • NpsNps Experienced Mentor Registered Posts: 782
    Ah, I guessed we must be talking about different questions!

    The marginal cost only includes the variable costs of production so will not include the fixed costs (of production). So (60,000+120,000)/20,000 units so £9.

    Including the fixed costs too, gives you the full production cost (in other words, part a).
  • AATnoviceAATnovice Feels At Home Registered Posts: 46
    your a gem

    Thank you
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