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A-LevelAccountingMarginal CostingOct/Nov 2020Paper 1 Q271 Mark

A product has the following revenue and costs per unit. $ selling price 40 marginal cost 22 fixed manufacturing overhead 6 non-manufacturing overhead 2 What is the contribution to sales ratio?

A25%
B30%
C45%
D55%

✓ 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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About This A-Level Accounting Question

This multiple-choice question appeared in the Cambridge A-Level Accounting (9706) Oct/Nov 2020 examination, Paper 1 Variant 2. It tests the topic of Marginal Costing and is worth 1 mark.

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