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A-LevelAccountingCosting / Marginal vs Absorption CostingFeb/Mar 2024Paper 1 Q261 Mark

The following information is forecast for the next month. opening inventory 20 300 units closing inventory 22 500 units marginal cost profit $90 600 absorption cost profit $100 400 What is the overhead absorption rate per unit?

A$4.03
B$4.45
C$4.46
D$4.95

✓ Correct Answer

The correct answer is B. This question tests the candidate's understanding of costing / marginal vs 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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About This A-Level Accounting Question

This multiple-choice question appeared in the Cambridge A-Level Accounting (9706) Feb/Mar 2024 examination, Paper 1 Variant 2. It tests the topic of Costing / Marginal vs Absorption Costing and is worth 1 mark.

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