A-LevelAccountingMarginal CostingOct/Nov 2020Paper 1 Q261 Mark
A company sells a single product for $24 per unit. The variable cost is $8 per unit. Fixed costs have been absorbed based on a normal activity level of 1000 units at $6 per unit. What is the profit under marginal costing if the company makes and sells 1250 units?
A$10000
B$12500
C$14000
D$20000
✓ Correct Answer
The correct answer is C. This question tests the candidate's understanding of marginal costing within the Accountingsyllabus. The examiner's mark scheme requires...
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Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...
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