A-LevelAccountingCosting Methods (Absorption Costing)Feb/Mar 2016Paper 1 Q261 Mark
A business produces and sells watches. In 2015, 4000 watches were produced and 3600 watches were sold. Other information for the year included the following: $ per unit direct materials 60 direct labour 80 variable selling expenses 15 fixed manufacturing overheads 45 fixed administrative costs 50 What is the cost of goods sold for 2015 if the business uses absorption costing?
A$558000
B$666000
C$720 000
D$740000
✓ Correct Answer
The correct answer is B. This question tests the candidate's understanding of costing methods (absorption costing) 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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