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Costs, scale of production and break-even analysis
Practice Questions

20 CIE IGCSE Business Studies questions on Costs, scale of production and break-even analysis, each with instant feedback and a full examiner-style mark scheme.

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Try 2 sample questions on Costs, scale of production and break-even analysis

Question 1 · 1 mark · Difficulty 1/3

Which of the following best defines 'contribution' in break-even analysis?

  1. Total revenue minus fixed costs of the business
  2. Selling price per unit minus variable cost per unit
  3. Total revenue minus total costs of the business
  4. Fixed costs divided by the number of units sold
Show answer & explanation
✓ Answer: B — Selling price per unit minus variable cost per unit
Contribution per unit = Selling price per unit − Variable cost per unit. It shows how much each unit sold contributes towards covering fixed costs and then profit. Option A describes profit, Option C describes fixed cost per unit, and Option D incorrectly subtracts only fixed costs from revenue.
Question 2 · 1 mark · Difficulty 2/3

A factory produces 500 units and its total costs are $10,000. Its fixed costs are $4,000. What is the variable cost per unit?

  1. $20.00 per unit
  2. $8.00 per unit
  3. $12.00 per unit
  4. $16.00 per unit
Show answer & explanation
✓ Answer: C — $12.00 per unit
Variable costs = Total costs − Fixed costs = $10,000 − $4,000 = $6,000. Variable cost per unit = $6,000 ÷ 500 = $12.00. Option A divides total costs by 500 incorrectly. Option C divides total costs by fixed costs. Option D confuses total cost per unit with variable cost per unit.
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CIE IGCSE Business Studies: Costs, scale of production and break-even analysis FAQ

How many CIE IGCSE Business Studies questions on Costs, scale of production and break-even analysis are there on Kramizo?
Kramizo currently has 20 exam-board-aligned practice questions on Costs, scale of production and break-even analysis for CIE IGCSE Business Studies, with new questions added every week. Each question gives you instant feedback and a full examiner-style mark scheme that tells you exactly what would earn marks on a real CIE paper. The questions span the full difficulty range — from straightforward recall (level 1) right up to multi-step reasoning and evaluation (level 3) — so the bank works for first-pass revision and final exam-week stress testing alike.
Is Kramizo free for CIE IGCSE students preparing for Business Studies?
Yes — completely free. Every student gets 45 questions a day on the free plan, with no card required and no trial countdown. That free quota works across every subject and every topic in our bank, so you can mix Costs, scale of production and break-even analysis practice with other Business Studies topics or even switch to a totally different CIE subject without paying anything. Kramizo's optional Pro plan removes the daily cap and adds detailed progress analytics, but the free tier is the real product — used by thousands of GCSE, IGCSE and CSEC students.
Are the Costs, scale of production and break-even analysis questions aligned to the official CIE IGCSE Business Studies syllabus?
Every question is written against the published CIE IGCSE Business Studies specification, including the exact command words (state, describe, explain, calculate, evaluate, etc.), mark allocations, and difficulty tier you'd see on a real CIE paper. Explanations are written in the style of official examiner mark schemes — they tell you what is being awarded marks and why distractors are wrong, not just whether you got it right. The bank is continually refined to match the latest syllabus updates from CIE.
How is Costs, scale of production and break-even analysis typically tested on CIE IGCSE Business Studies papers?
Costs, scale of production and break-even analysis appears across multiple question types on real CIE IGCSE Business Studies papers — most commonly as multiple-choice questions in the objective section, structured short-answer questions in the main paper, and occasionally as part of an extended response. Kramizo's practice bank reflects that mix: 4-option MCQs, true/false statements, fill-in-the-blank key terms, multi-select questions, and ordering questions. Working through the bank gives you exposure to every question style examiners actually use.

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