A-LevelAccountingTraditional costing methods9706/12 · Oct/Nov 2017 · Q281 Mark

Which statements about the limitations of marginal costing are correct? 1 Finance costs are not included in the manufacturing overheads. 2 Variable cost per unit changes at different levels of activity. 3 Some costs may be semi-variable costs.

A1 and 2

B1 only

C2 and 3

D3 only

✓ Correct answer

D: 3 only

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Topic: Traditional costing methods, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Oct/Nov 2017 Paper 1 Variant 2, question 28.

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