A-LevelAccountingCosting MethodsMay/June 2012Paper 1 Q281 Mark
Which costing method is best suited to valuing inventory and which for deciding whether to accept an order below normal selling price? valuation of inventory decision on accepting order below normal selling price absorption costing absorption costing absorption costing marginal costing marginal costing absorption costing marginal costing marginal costing
Aabsorption costing absorption costing
Babsorption costing marginal costing
Cmarginal costing absorption costing
Dmarginal costing marginal costing
✓ Correct Answer
The correct answer is B: absorption costing marginal costing
📋 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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