A-LevelAccountingJob Costing and Absorption CostingOct/Nov 2009Paper 1 Q261 Mark
A business uses job costing to calculate the cost of vehicle repair jobs. Overheads are allocated on an absorption costing basis. What is the effect of this method of allocation?
Aoverheads will include both fixed and variable overhead costs
Boverheads will include direct costs only
Coverheads will include fixed overhead costs only
Doverheads will include variable overhead costs only
✓ Correct Answer
The correct answer is A. This question tests the candidate's understanding of job costing and absorption 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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