Accounting Multiple Choice Question – 25 May 2022

A business changed from using absorption costing to marginal costing.

This had no effect on profit for the month.

What had happened in the month?

Select ONE answer:

1. Production was stopped during the period.
2. Units produced and sold were equal.
3. Units produced were greater than units sold.
4. Units produced were less than units sold.

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 2

1. Not correct
2. Correct
3. Not correct
4. Not correct

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