A-LevelAccountingCosting (Absorption vs Marginal)May/June 2022Paper 1 Q241 Mark
What is a limitation of absorption costing?
AIt does not comply with accounting principles.
BIt does not take into account all costs of production.
CIt is not accepted for preparing published financial statements.
DIt is not useful for improving the organisation's performance.
✓ Correct Answer
The correct answer is D. This question tests the candidate's understanding of costing (absorption vs marginal) 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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