A-LevelAccountingTraditional costing methods9706/12 · May/June 2016 · Q281 Mark

A company uses marginal costing. Which costs are included in its inventory valuation?

Avariable manufacturing cost, fixed manufacturing overhead and variable selling expenses

Bvariable manufacturing cost and fixed manufacturing overhead only

Cvariable manufacturing cost and variable selling expenses only

Dvariable manufacturing cost only

✓ Correct answer

D: variable manufacturing cost only

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Topic: Traditional costing methods, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, May/June 2016 Paper 1 Variant 2, question 28.

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