A-LevelAccountingCosting MethodsOct/Nov 2015Paper 1 Q291 Mark
A business produces a single product. | | number of units | |---|---| | opening inventory | 5000 | | production | 15000 | | closing inventory | 2000 | The variable production cost per unit is $10 and the fixed production cost is $60000. The sales revenue is $360000. Profit is $108000 based on full absorption costing. What is the profit based on marginal costing?
A$8000 higher
B$8000 lower
C$12000 higher
D$12000 lower
✓ Correct Answer
The correct answer is C. This question tests the candidate's understanding of costing methods 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...
🔒
Unlock the Examiner's Answer
Sign up for free to reveal the correct answer, the official mark scheme breakdown, and the examiner trap analysis for this question.
Sign Up Free to Unlock →Join thousands of Cambridge students already using Oracle Prep