A-LevelAccountingCosting and Inventory ValuationOct/Nov 2011Paper 1 Q301 Mark

A business provides the following data for the year. budgeted output (units) 10 000 actual output (units) 8 000 $ budgeted fixed production costs 1 200 000 budgeted variable production costs 800 000 budgeted fixed selling overhead 600 000 What is the absorption cost per unit used for inventory valuation?

Q: What topic does this question test?

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

A$200

B$250

C$260

D$325

✓ Correct Answer

The correct answer is A: $200

📋 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 and Inventory Valuation in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Accounting Oct/Nov 2011 examination, Paper 1 Variant 2.

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