Costs

Worked examples (6)

• 1Calculate a cost-plus price (3 marks)
• 2Calculate profit from cost and revenue (3 marks)
• 3Special-order decision using contribution (5 marks)
• 4Explain how costs are used in pricing (5 marks)
• 5Special order with no spare capacity (8 marks)
• 6Analyse the limitations of cost-plus pricing (6 marks)

Model answers (6)

• ✓Model answer — 9609 Paper 1 Section A style
• ✓Model answer — 9609 Paper 1 Section A style
• ✓Model answer — 9609 Paper 1 Section A / Paper 2 style
• ✓Model answer — 9609 Paper 1 Section B(a) style
• ✓Model answer — 9609 Paper 1 Section B(b) style
• ✓Model answer — 9609 Paper 1 Section B (full essay) / Paper 2 (e) style

Worked examples (6)

• 1Calculate contribution per unit (2 marks)
• 2Calculate total contribution (3 marks)
• 3Distinguish contribution from profit (5 marks)
• 4Explain a limitation of full costing (5 marks)
• 5Analyse a positive contribution but overall loss (8 marks)
• 6Compare full and contribution costing (6 marks)

Model answers (6)

• ✓Model answer — 9609 Paper 1 Section A style
• ✓Model answer — 9609 Paper 1 Section A style
• ✓Model answer — 9609 Paper 1 Section A / Paper 2 style
• ✓Model answer — 9609 Paper 1 Section B(a) style
• ✓Model answer — 9609 Paper 1 Section B(b) style
• ✓Model answer — 9609 Paper 1 Section B (full essay) / Paper 2 (e) style

Worked examples (6)

• 1Classify costs as fixed or variable (3 marks)
• 2Identify direct and indirect costs (3 marks)
• 3Calculate total cost and average cost (5 marks)
• 4Explain why accurate cost information matters (5 marks)
• 5Show how average cost changes with output (8 marks)
• 6Distinguish the two cost classifications (6 marks)

Model answers (6)

• ✓Model answer — 9609 Paper 1 Section A style
• ✓Model answer — 9609 Paper 1 Section A style
• ✓Model answer — 9609 Paper 1 Section A / Paper 2 style
• ✓Model answer — 9609 Paper 1 Section B(a) style
• ✓Model answer — 9609 Paper 1 Section B(b) style
• ✓Model answer — 9609 Paper 1 Section B (full essay) / Paper 2 (e) style

Worked examples (6)

• 1Calculate contribution per unit (2 marks)
• 2Calculate the break-even output (3 marks)
• 3Calculate margin of safety and profit (5 marks)
• 4Read profit and margin of safety from a break-even chart (5 marks)
• 5What-if: effect of higher fixed costs (8 marks)
• 6Analyse the limitations of break-even analysis (6 marks)

Model answers (6)

• ✓Model answer — 9609 Paper 1 Section A style
• ✓Model answer — 9609 Paper 1 Section A style
• ✓Model answer — 9609 Paper 1 Section A / Paper 2 style
• ✓Model answer — 9609 Paper 1 Section B(a) style
• ✓Model answer — 9609 Paper 1 Section B(b) style
• ✓Model answer — 9609 Paper 1 Section B (full essay) / Paper 2 (e) style