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A-LevelAccountingCostingMay/June 2025Paper 1 Q261 Mark

Which statement describes the purpose of overhead allocation?

Aassignment of specific costs to production departments
Bassignment of specific costs to service departments
Csharing out common costs between production departments
Dsharing out common costs between service departments

✓ Correct Answer

The correct answer is A. This question tests the candidate's understanding of 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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About This A-Level Accounting Question

This multiple-choice question appeared in the Cambridge A-Level Accounting (9706) May/June 2025 examination, Paper 1 Variant 2. It tests the topic of Costing and is worth 1 mark.

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