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A-LevelAccountingTraditional costing methods9706/12 · Oct/Nov 2021 · Q231 Mark

A business uses absorption costing to set its selling prices. Which overheads are accounted for by the use of the overhead absorption rate?

Atotal production, administrative and selling
Btotal production only
Cvariable production, administrative and selling
Dvariable production only

✓ Correct answer

B: total production only

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About this question

Topic
Traditional costing methods, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source
A-Level Accounting, Oct/Nov 2021 Paper 1 Variant 2, question 23.

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