A-LevelAccountingDecision Making (Limiting Factors)May/June 2022Paper 1 Q281 Mark
A business makes and sells three different product types, M, N and O. The following information is available. product M N O per unit $ $ $ selling price 240 280 250 direct material 110 120 90 direct labour 65 90 100 variable overheads 20 30 25 fixed overheads 50 30 18 profit/(loss) (5) 10 17 Each product uses the same direct material, which is in short supply. In which order of priority should the products be produced to maximise the profit?
AM→N→O
BM→O→N
CN→O→M
DO→N→M
✓ Correct Answer
The correct answer is B. This question tests the candidate's understanding of decision making (limiting factors) 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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