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A-LevelAccountingCosting for materials and labour9706/12 · May/June 2021 · Q221 Mark

A business uses absorption costing. What will be included in cost of sales?

Avariable manufacturing costs, variable selling costs and fixed manufacturing costs
Bvariable manufacturing costs and fixed manufacturing costs only
Cvariable manufacturing costs and variable selling costs only
Dvariable manufacturing costs only

✓ Correct answer

B: variable manufacturing costs and fixed manufacturing costs only

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About this question

Topic
Costing for materials and labour, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source
A-Level Accounting, May/June 2021 Paper 1 Variant 2, question 22.

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