A-LevelAccountingMarginal Costing and Decision MakingFeb/Mar 2021Paper 1 Q261 Mark
Which situation is not usually suitable for the use of marginal costing?
Anegotiating a regular selling price with a customer
Bquoting a selling price for a special order
Cwhen there is a shortage of direct material for the next month
Dwhether to make or buy-in a product
✓ Correct Answer
The correct answer is A. This question tests the candidate's understanding of marginal costing and decision making within the Accountingsyllabus. The examiner's mark scheme requires...
📋 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...
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