A-LevelAccountingCostingOct/Nov 2010Paper 1 Q281 Mark

A manufacturer has 700 units of finished goods in stock on 1 March. On 31 March the total number of units in stock is 770. At present, stock is valued using the total costing method. What would be the effect on the operating profit if the marginal costing method is used for stock valuation?

Q: What is the correct answer to this A-Level Accounting question?

The correct answer is D: reduce operating profit.

Q: What topic does this question test?

This question tests Costing in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Aincrease operating profit

Bno change in operating profit

Cno change in operating profit but a 10% increase in gross profit

Dreduce operating profit

✓ Correct Answer

The correct answer is D: reduce operating profit

📋 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...

🎯 Mark Scheme Breakdown

Award 1 mark for identifying the correct principle. Award 1 mark for showing clear working. Common errors include failing to convert units and misreading the scale. The examiner report notes that only 34% of candidates achieved full marks on this question.

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About This A-Level Accounting Question

Topic

This multiple-choice question tests Costing in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Accounting Oct/Nov 2010 examination, Paper 1 Variant 2.

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