A-LevelAccountingAbsorption Costing & Marginal CostingOct/Nov 2016Paper 1 Q251 Mark
In a manufacturing business the following could occur. 1 Actual overheads paid are less than budgeted overheads. 2 Actual overheads paid are more than budgeted overheads. 3 Actual units produced are less than budgeted units. 4 Actual units produced are more than budgeted units. Which situations would result in an under absorption of overhead expenditure?
A1 and 3
B1 and 4
C2 and 3
D2 and 4
✓ Correct Answer
The correct answer is C. This question tests the candidate's understanding of absorption costing & marginal 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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