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CXC CAPE · · Accounting

Relevant costing for decisions
Practice Questions

40 CXC CAPE Accounting questions on Relevant costing for decisions, each with instant feedback and a full examiner-style mark scheme.

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✨ Revision guide includes key terms, worked examples and exam technique for Relevant costing for decisions.

Try 2 sample questions on Relevant costing for decisions

Question 1 · 1 mark · Difficulty 1/3

What makes a cost relevant to a decision?

  1. It appears in the management accounts for the period
  2. It is a future cash flow that differs between the alternatives
  3. It is large enough to affect the reported profit
  4. It has been approved by the budget holder
Show answer & explanation
✓ Answer: B — It is a future cash flow that differs between the alternatives
Award 1 mark. All three conditions must hold — most exam traps are a cost that satisfies two of them and fails the third.
Question 2 · 1 mark · Difficulty 1/3

What is a sunk cost?

  1. A cost that exceeds the budget set for it
  2. A cost already incurred, which no present decision can change
  3. A cost that has been written off to the income statement
  4. A cost that will be incurred in the future under both alternatives
Show answer & explanation
✓ Answer: B — A cost already incurred, which no present decision can change
Award 1 mark. It is never relevant, whatever its size — continuing a failing project because of what has already been spent is the classic error this topic exists to prevent.
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20 questions · 25 min · free

CXC CAPE Accounting: Relevant costing for decisions FAQ

Is Kramizo free for CXC CAPE students preparing for Accounting?
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 Relevant costing for decisions practice with other Accounting topics or even switch to a totally different CXC CAPE 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 Relevant costing for decisions questions aligned to the official CXC CAPE Accounting syllabus?
Every question is written against the published CXC CAPE Accounting specification, including the exact command words (state, describe, explain, calculate, evaluate, etc.), mark allocations, and difficulty tier you'd see on a real CXC CAPE 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 CXC CAPE.
How is Relevant costing for decisions typically tested on CXC CAPE Accounting papers?
Relevant costing for decisions appears across multiple question types on real CXC CAPE Accounting 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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