A-LevelAccountingTraditional costing methods9706/12 · Oct/Nov 2019 · Q241 Mark

A company calculates its profit using marginal costing as $90000 for a month. Opening inventory was 4000 units and closing inventory 6000 units. The fixed production overhead absorption rate is $20 per unit. What is the profit under absorption costing?

A$10000

B$50 000

C$130000

D$170000

✓ Correct answer

C: $130000

Oracle Prep sorts past-paper questions by topic, so you can drill Traditional costing methods and see which topics are most likely to come up next.

Topic: Traditional costing methods, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Oct/Nov 2019 Paper 1 Variant 2, question 24.

Questions and mark schemes are from past examination papers and remain the copyright of the exam board. How Oracle Prep builds its content

The costs of a company that annually sells 10000 units are as follows. Direct material $50000; assembly labour $1000…

Which statements identify a disadvantage of break-even analysis? 1 It does not show the effect of changes in output …

Which business would use a job costing system of accounting?

Which rule does not apply in the absence of a partnership agreement?

The partnership of Ravi and Tania, who shared profits equally, was dissolved. The capital accounts prior to dissoluti…

A company issues 50000 ordinary shares of $5 each at a premium of $15. It also issues a 4% debenture, $300000. By whi…