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?

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

The correct answer is B: $4.45.

Q: What topic does this question test?

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

A$4.03

B$4.45

C$4.46

D$4.95

✓ Correct Answer

The correct answer is B: $4.45

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

Source

This question appeared in the Cambridge A-Level Accounting Feb/Mar 2024 examination, Paper 1 Variant 2.

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