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A Level · Business Studies · Chapter 14
Ch 14 Costs and Break-even Analysis: complete notes
Neat, exam-ready notebook-style notes for Ch 14 Costs and Break-even Analysis, following the Cambridge A Level 9609 syllabus, AS and A Level. This chapter is part of the complete A Level Business 9609 Complete Notes: All 26 Chapters, AS and A Level (Cambridge 2026–2028).
Free preview: Ch 14 Costs and Break-even Analysis notes
A quick look at the chapter from our A Level Business Studies notes. The full chapter notes have the detailed explanations, diagrams and practice questions with answers.
Topics in this chapter
- The need for accurate cost information
- Different types of costs
- Average, marginal and total costs for decision-making
- How costs can be used for pricing decisions
- Using costs to monitor and improve performance
- The technique of contribution costing
- Contribution costing and special order decisions
“I can” checklist: what you must be able to do
- explain why accurate cost information is needed
- classify fixed, variable, direct and indirect costs
- calculate total, average and marginal cost and a cost-plus price
- allocate overheads and calculate profit by full costing
- calculate contribution and explain how it differs from profit
- decide whether to drop a product or accept a special order
- calculate break-even output, revenue, margin of safety and profit
- draw and read a break-even chart, including changes
- evaluate the uses and limitations of break-even and both costing methods
- write 2, 3, 5, 8 and 12-mark answers with the right balance of AO1–AO4
What is inside the full chapter notes
- Concept notes, computed graphs and 8 worked examples (calculations and model answers with AO labels)
- Exam skills for Papers 1 and 2; common mistakes from the examiner report
- 20 quick-check multiple-choice questions, explained
- Two Paper 1 Section A questions, one Section B essay and one Paper 2 style case question, all with levels-based mark schemes
- Quick-reference table, "I can" checklist
What you get in the pack
- All 26 chapters of the Cambridge International AS & A Level Business 9609 syllabus (exams 2026–2028): enterprise, business structure and size, objectives and stakeholders, human resource management, motivation, leadership, marketing and market research, operations, inventory and quality, finance, cash flow, costs and break-even, budgets, external influences, strategy, organisational structure, communication, marketing strategy, location and scale, financial statements and ratios, investment appraisal
- Every syllabus statement covered in order, each marked AS or A Level, with clear notes, tables and diagrams drawn for these notes
- 8 worked examples in every chapter: calculations and model answers that show how to earn the marks
- Exam skills for every paper (command words, how AO1–AO4 marks are earned) and common mistakes taken from Cambridge examiner reports
- 20 quick-check multiple-choice questions per chapter with answers and explanations
- Original exam-style questions in the style of Papers 1–4 (short answers, essays and case studies) with full levels-based mark schemes (no past-paper reprints)
- Quick-reference sheet and an "I can" checklist at the end of every chapter
- Colour PDF and a black and white copy of every chapter for printing
- Independent notes; not endorsed by or affiliated with Cambridge University Press & Assessment
All chapters in this pack
- Ch 1 Enterprise
- Ch 2 Business Structure
- Ch 3 Size of Business
- Ch 4 Business Objectives and Stakeholders
- Ch 5 Human Resource Management
- Ch 6 Motivation and Management
- Ch 7 The Nature of Marketing
- Ch 8 Market Research
- Ch 9 The Marketing Mix
- Ch 10 The Nature of Operations
- Ch 11 Inventory Management, Capacity Utilisation and Outsourcing
- Ch 12 Business Finance and Sources of Finance
- Ch 13 Forecasting and Managing Cash Flows
- Ch 14 Costs and Break-even Analysis
- Ch 15 Budgets and Variances
- Ch 16 External Influences on Business Activity
- Ch 17 Business Strategy
- Ch 18 Organisational Structure
- Ch 19 Business Communication
- Ch 20 Leadership and HRM Strategy
- Ch 21 Marketing Analysis
- Ch 22 Marketing Strategy
- Ch 23 Location and Scale
- Ch 24 Quality Management and Operations Strategy
- Ch 25 Financial Statements and Analysis of Published Accounts
- Ch 26 Investment Appraisal and Finance and Accounting Strategy