A-LevelAccountingCostingOct/Nov 2025Paper 1 Q231 Mark

W Limited is unsure whether to use marginal costing or absorption costing. Which row is correct? charges overheads to expenses rather than to products gives higher profits when inventory levels are increasing A absorption absorption B absorption marginal C marginal absorption D marginal marginal

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

The correct answer is C: marginal, absorption.

Q: What topic does this question test?

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

Aabsorption, absorption

Babsorption, marginal

Cmarginal, absorption

Dmarginal, marginal

✓ Correct Answer

The correct answer is C: marginal, absorption

📋 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 Costing in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Accounting Oct/Nov 2025 examination, Paper 1 Variant 2.

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