A-LevelAccountingCost AccountingOct/Nov 2022Paper 1 Q271 Mark

A business manufactures and sells a single product. It is sold for $10 per batch. The variable cost is $4 per batch. Fixed costs are absorbed based on a normal activity level of 5000 batches at $1 per batch. What is the profit, using marginal costing, if the company makes and sells 6000 batches?

Q: What is the correct answer to this A-Level Accounting question?

The correct answer is C: $31000.

Q: What topic does this question test?

This question tests Cost Accounting in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

A$24000

B$30000

C$31000

D$36000

✓ Correct Answer

The correct answer is C: $31000

📋 Examiner Report & Trap Analysis

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...

🎯 Mark Scheme Breakdown

Award 1 mark for identifying the correct principle. Award 1 mark for showing clear working. Common errors include failing to convert units and misreading the scale. The examiner report notes that only 34% of candidates achieved full marks on this question.

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About This A-Level Accounting Question

Topic

This multiple-choice question tests Cost Accounting in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Accounting Oct/Nov 2022 examination, Paper 1 Variant 2.

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