A-LevelAccountingTraditional costing methods9706/12 · May/June 2023 · Q261 Mark

Why might a business use absorption costing? 1 to calculate inventory valuation for financial statements 2 to calculate selling price by adding profit to total cost 3 to include all production costs for the units produced

A1, 2 and 3

B1 and 2 only

C1 and 3 only

D2 and 3 only

✓ Correct answer

A: 1, 2 and 3

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Topic: Traditional costing methods, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, May/June 2023 Paper 1 Variant 2, question 26.

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