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Subjects · Leaving Cert Accounting

Leaving Cert Accounting: Marginal costing

How often Marginal costing comes up on the Accounting papers, every year it was asked, and questions to try.

HL Asked on 6 of the last 10 Higher Level papers, most recently in 2025. most years

OL Asked on 5 of the last 10 Ordinary Level papers, most recently in 2026.

Marginal costing, Higher Level(6 marks)

Quick ones on Marginal costing.

(a)Contribution per unit is…
  1. Selling price − total cost per unit
  2. Selling price − variable cost per unit
  3. Fixed costs ÷ units sold
(b)Break-even point in units is…
  1. Variable cost ÷ contribution per unit
  2. Fixed costs ÷ selling price per unit
  3. Fixed costs ÷ contribution per unit
(c)Selling price €10; variable cost €6; fixed costs €8,000. Break-even units?
  1. 2,000
  2. 1,333
  3. 800
Show the answers

(a) Selling price − variable cost per unit

(b) Fixed costs ÷ contribution per unit

(c) 2,000

Your turn: Higher Level questions on Marginal costing.

Higher Level

Asked on 6 of the last 10 Higher Level papers, most recently in 2025. most years

Every paper, year by year

YearWhere it came up
2026Not asked
2025Q8
2024Q8
2023Q8
2022Not asked
2021Q9
2019Not asked
2018Q9
2017Q8
2016Not asked

Links open the State Examinations Commission’s paper for that year.

More Marginal costing questions

Marginal costing, 2 marks

With spare capacity, a special order adds to profit if its price exceeds the…

  1. Full cost per unit
  2. Fixed cost per unit
  3. Variable cost per unit
Show the answer

Variable cost per unit

Fixed costs are paid anyway, so any price above variable cost gives extra contribution and therefore extra profit.

Marginal costing, 2 marks

Price €20; variable cost €12; 5,000 units sold; fixed costs €30,000. Profit?

  1. €70,000
  2. €10,000
  3. €40,000
Show the answer

€10,000

Contribution = (€20 − €12) × 5,000 = €40,000. Profit = €40,000 − €30,000 fixed costs = €10,000.

Marginal costing, 2 marks

On a break-even chart, break-even is where…

  1. The total revenue line crosses the total cost line
  2. The fixed cost line meets the vertical axis
  3. The variable cost line reaches its highest point on the chart
Show the answer

The total revenue line crosses the total cost line

At that point revenue exactly covers fixed plus variable costs; to the right is profit, to the left is loss.

Ordinary Level

Asked on 5 of the last 10 Ordinary Level papers, most recently in 2026.

Every paper, year by year

YearWhere it came up
2026Q8
2025Not asked
2024Q8
2023Not asked
2022Q8
2021Not asked
2019Not asked
2018Q8
2017Not asked
2016Q8

Links open the State Examinations Commission’s paper for that year.

More Marginal costing questions

Marginal costing, 2 marks

The break-even point is where…

  1. Profit is at its very highest level
  2. Variable costs fall to zero
  3. Total revenue equals total costs
Show the answer

Total revenue equals total costs

At break-even there is no profit and no loss: sales exactly cover fixed and variable costs.

Marginal costing, 3 marks

Sales €60,000; variable costs €36,000. Total contribution?

  1. €36,000
  2. €24,000
  3. €96,000
Show the answer

€24,000

Contribution = sales − variable costs = €60,000 − €36,000 = €24,000. Fixed costs are then taken from this.

Marginal costing, 3 marks

Budgeted sales 4,000 units; break-even 2,500 units. Margin of safety in units?

  1. 1,500 units
  2. 6,500 units
  3. 2,500 units
Show the answer

1,500 units

Margin of safety = budgeted sales − break-even = 4,000 − 2,500 = 1,500 units. Sales can fall this far before a loss.

Other Accounting topics

All of Leaving Cert Accounting