Financial Performance AAT Practice Paper 4

AATnovice

Hi Everyone,

could anyone help me with task 2.2D?

it is the marginal cos per unit?

Thank you in advance

Nps

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?

AATnovice

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

Nps

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?

AATnovice

sorry Nps its B

Feel so silly now

sorry

Nps

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).

AATnovice

your a gem

Thank you