A-LevelAccountingTraditional costing methods9706/12 · Feb/Mar 2016 · Q271 Mark

Which items are included in the marginal cost of a unit of production?

Adirect labour, direct materials, fixed production costs and variable production overheads

Bdirect labour, direct materials, fixed costs and variable production overheads

Cdirect labour, direct materials and variable production overheads only

Ddirect labour and direct materials only

✓ Correct answer

C: direct labour, direct materials and variable production overheads only

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Topic: Traditional costing methods, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Feb/Mar 2016 Paper 1 Variant 2, question 27.

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