Fixed Cost Per Unit Is £9 When 20,000 Units Are

question 26

Multiple Choice

Fixed cost per unit is £9 when 20,000 units are produced and £6 when 30,000 units are produced. What is the total fixed cost when nothing is produced?

• A)£120,000
• B)£270,000
• C)£15
• D)£180,000

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Definitions:

Early Adoption

Early adoption refers to the implementation of new accounting standards or regulations before the mandatory effective date prescribed by the regulatory bodies.

Reportable Segments

Operating segments for which an entity reports separate information.

Quantitative Threshold

A predefined numeric limit used to measure the significance or materiality of data, often used to decide when an action is required.

Profit/Loss

Financial metrics indicating the net earnings or deficits incurred by an entity over a particular period, calculated as the difference between revenues and expenses.