Cost–volume–profit analysis: past paper questions
Real questions on cost–volume–profit analysis
The newest 20 of 141 written questions. Open one to see it on the real paper.
- 9706/33 · October/November 2025 · Q1e[7]
Discuss the factors Faizan should consider before responding to the new customer. Support your answer by considering two ways in which he could fulfil the order.
See it on the paper → - 9706/33 · May/June 2025 · Q2b[2]
Calculate, to two decimal places, the return on capital employed for the year 2024.
See it on the paper → - 9706/33 · May/June 2025 · Q2c(i)[2]
Calculate, to two decimal places, the gearing ratio for both the years 2023 and 2024.
See it on the paper → - 9706/33 · May/June 2025 · Q2c(ii)[4]
Comment on the gearing ratio with reference to the calculations in (c)(i). Additional information The 2023 interim dividend was $0.05 per share. TN plc had a dividend cover of 1.8 times in 2023. In considering the proposed 2024 final dividend, the directors suggest that the dividend cover for 2024 should be increased t...
See it on the paper → - 9706/33 · May/June 2025 · Q2d(i)[3]
Calculate the proposed 2024 final dividend per share.
See it on the paper → - 9706/33 · May/June 2025 · Q2d(ii)[4]
Explain why the directors want to increase the dividend cover for 2024. (ii) Additional information The market price of one share of TN plc at 31 December was as follows: 2024 $4.65 2023 $3.72
See it on the paper → - 9706/33 · May/June 2025 · Q2e[5]
Comment on the company’s 2024 price/earnings (PE) ratio as compared to the company’s PE ratio in 2023. Support your answer with calculations.
See it on the paper → - 9706/43 · May/June 2025 · Q1a[10]
$ Rental $ Fixed costs Administrative costs $ $ Net cash flow (a) Complete the following table by calculating the net cash flow for each year of the project. $ Tickets $ $ Equipment Cost Year Additional information Waheed has a cost of capital of 10%. The discount factors for this are as follows: Year Discount factor 1...
See it on the paper → - 9706/43 · May/June 2025 · Q1b[4]
Calculate the net present value (NPV) of the project, assuming that day tickets are sold. Waheed was also considering selling annual tickets instead of day tickets. His best estimate of the sales of annual tickets was as follows: Year Number of annual tickets sold Total revenue $ 1 100 20 000 2 120 30 000 3 160 40 000...
See it on the paper → - 9706/43 · May/June 2025 · Q1c[7]
Advise Waheed whether he should sell day tickets or annual tickets if he goes ahead with the project. Justify your answer. A recalculation of the NPV with annual tickets is not required. Additional information Waheed’s brother uses the accounting rate of return (ARR) when considering his projects.
See it on the paper → - 9706/43 · May/June 2025 · Q1d[4]
State two advantages and two disadvantages of using ARR. Advantages Disadvantages
See it on the paper → - 9706/22 · February/March 2025 · Q1f[7]
Advise the partners which option they should choose. Justify your answer by discussing both options.
See it on the paper → - 9706/32 · February/March 2025 · Q1c[5]
Advise whether or not CF Limited has made a good decision to take over the delivery services. Justify your answer.
See it on the paper → - 9706/22 · October/November 2024 · Q4d[2]
Explain one advantage of cost–volume–profit analysis.
See it on the paper → - 9706/23 · October/November 2024 · Q4a(i)[1]
the total number of chargeable hours available for the year ending 31 December 2025
See it on the paper → - 9706/23 · October/November 2024 · Q4a(ii)[3]
the break-even point in hours
See it on the paper → - 9706/23 · October/November 2024 · Q4a(iii)[1]
the number of chargeable hours required to produce a profit of $45 000 for the year ending 31 December 2025. Additional information Due to poor motivation, the Payroll services department is expected to work at 85% capacity during the year ending 31 December 2025.
See it on the paper → - 9706/23 · October/November 2024 · Q4b[4]
Prepare a budgeted marginal cost statement to show the Payroll services department profit for the year ending 31 December 2025. H Limited Payroll services department Budgeted marginal cost statement for the year ending 31 December 2025 Additional information The directors of H Limited are of the opinion that the perfor...
See it on the paper → - 9706/23 · October/November 2024 · Q4c[3]
Calculate the number of overtime hours required for the Payroll services department for the year ending 31 December 2025 if the directors choose Option 1.
See it on the paper → - 9706/23 · October/November 2024 · Q4d[7]
Prepare a budgeted marginal cost statement to show the Payroll services department profit for the year ending 31 December 2025 if the directors choose Option 1.
See it on the paper →
What examiners said
Candidates were required to advise the directors which was the most suitable option to improve liquidity. This was a well answered question with both options discussed, and many gained high marks here. The decision was also well answered and only a few candidates did not attempt to give advice as requested. Many candidates identified both the benefits and possible disadvantages of each option. The...
— Examiner report, February/March 2025, 9706/22 Q1(f) (Cambridge)
This was reasonably well answered with most candidates providing the required advice along with comments to justify their decision.
— Examiner report, February/March 2025, 9706/32 Q1(c) (Cambridge)
Candidates were required to state the meaning of break-even point and most were able to offer valid meaning.
— Examiner report, October/November 2023, 9706/23 Q4(c)(i) (Cambridge)
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