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A Level Accounting (9706)•9706/12/M/J/24
Question 25 from 9706/12/M/J/24

Explanation

Calculate costs per occupied bed day using total bed occupancy

Steps:

  • Determine daily occupied beds: 150 two-bed rooms × 2 beds = 300 beds; 50 one-bed rooms × 1 bed = 50 beds; total 350 beds per day.
  • Compute total occupied bed days over 30 days: 350 beds/day × 30 days = 10,500 bed days.
  • Divide total costs by total bed days: 300,000÷10,500=300,000 ÷ 10,500 = 300,000÷10,500=28.57 per occupied bed day.
  • Average length of stay is unused, as occupancy data suffices for bed days.

Why B is correct:

  • Matches formula for unit cost: total costs ÷ total occupied bed days, standard in hospitality metrics.

Why the others are wrong:

  • A: Underestimates by using room days (150 + 50 = 200 × 30 = 6,000) instead of bed days.
  • C: Assumes all rooms are one-bed or ignores bed count, yielding 300,000÷(200×30)=300,000 ÷ (200 × 30) = 300,000÷(200×30)=50.
  • D: Divides by total possible beds (240 rooms × 30 × average beds/room ≈ 3,085), not occupied.

Final answer: B

Topic: Traditional costing methods

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