A-LevelAccountingAbsorption Costing & Marginal CostingOct/Nov 2016Paper 1 Q261 Mark
A company makes and sells a single product for $12 per batch. The variable cost is $4 per batch. Fixed costs have been absorbed based on a normal activity level of 1000 batches at $3 per batch. What is the profit under marginal costing if the company makes and sells 1500 batches?
A$6000
B$7500
C$9000
D$12000
✓ 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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