A-LevelAccountingMarginal and Absorption CostingMay/June 2019Paper 1 Q251 Mark
A company produces less than it sells in a particular period. Which statement is correct?
AReported profit is the same whether absorption or marginal costing is used.
BReported profit is the difference between absorption and marginal costing closing inventories.
CReported profit is lower using absorption costing.
DReported profit is lower using marginal costing.
✓ Correct Answer
The correct answer is C. This question tests the candidate's understanding of marginal and 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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