Page 271 - Microsoft Word - 00 CIMA F1 Prelims STUDENT 2018.docx
P. 271
Supplementary objective test questions
CHAPTERS 1 TO 3 – COST ACCOUNTING SYSTEMS
1.1 A company has the following budget for the year:
Selling price per unit $310
Variable production costs per unit $135
Fixed production costs per unit $90
Other variable costs per unit $30
Sales volume 60,000 units
Production volume 62,000 units
Opening inventory 1,000 units
If budgeted profit statements were prepared by using absorption costing
and then by using marginal costing:
A Marginal costing profits would be higher by $270,000
B Absorption costing profits would be higher by $180,000
C Absorption costing profits would be higher by $270,000
D Marginal costing profits would be higher by $180,000
267
