A-LevelAccountingTraditional costing methods9706/12 · Feb/Mar 2020 · Q241 Mark

Why might absorption costing be used? 1 to calculate contribution 2 to decide whether or not to accept a special order 3 to make long-term decisions 4 to set the selling price of a product

A1 and 3

B1 and 4

C2 and 3

D3 and 4

✓ Correct answer

D: 3 and 4

Oracle Prep sorts past-paper questions by topic, so you can drill Traditional costing methods and see which topics are most likely to come up next.

Topic: Traditional costing methods, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Feb/Mar 2020 Paper 1 Variant 2, question 24.

Questions and mark schemes are from past examination papers and remain the copyright of the exam board. How Oracle Prep builds its content

A company manufactures three products. The following information is obtained in respect of next month's budgeted prod…

The following information is available. Direct materials $20000; direct labour $45000; direct expenses $6000; variab…

A company provides the following information. Budgeted overheads $136000; budgeted labour hours 10568; actual overhe…

The statement of financial position of X Limited at 31 December 2017 shows the following. $000 non-current assets 135…

What is a direct cost?

A company pays its employees $6.80 per hour for a basic 40-hour week. An overtime premium of 50% is payable together …