Page 351 - Cambridge IGCSE Business Studies

27: Exam technique

Comments on part (a):

i The words have simply been reordered. This answer hasn’t actually explained the term, so no credit can be given.
ii This response gives a clear explanation. Remember it doesn’t have to be a textbook definition to get both marks.
iii This shows some understanding, but the link to level of output hasn’t been made.

b Calculate the weekly total costs of the new airport service. [2]

Answer:
Total costs = fi xed costs + variable costs

$500 + (20 × 20)
$500 + $400

Total costs = $900

Sample answers (written by the authors):

i TC = FC + $40
ii $1,000

iii TC = total fixed costs + total variable costs

= 500 + 400 349

Comments on part (b):

i The formula is incomplete, and $40 is wrong as it should be $400. Always include all your workings to maximise
your chances of success.
ii This response has calculated total revenue, which is not the question set.
iii The formula is correct, so could be rewarded. It has used the right numbers but the final answer has not been
calculated, which the question requires.

Note: For any numerical question, it is important to include the units. For example

some ratios such as gross profit margin are expressed as a percentage. If you don’t
include the % symbol, it might suggest that you don’t fully understand the method.
So you should always include the units as it is an important part of the answer.

c Identify and explain two ways the size of Omar’s business
can be measured. [4]

Extract from sample mark scheme:
Knowledge [2 × 1] – award 1 mark for each relevant way [max 2].
Application [2 × 1] – award 1 mark for each relevant explanation in context.