What this practice covers
These questions are drawn from past CIE 9706 Accounting papers and filtered to marginal costing. You answer, you find out immediately whether you were right, and you get the reasoning for the correct option and for each distractor. Wrong answers go to a mistakes locker so you can come back to exactly those.
Practice is free. You need an account only so your progress and your mistakes are still there next time.
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What examiners see students get wrong here
These are the errors that cost marks on marginal costing, taken from our own topic notes. Read them before you practise and you will recognise the traps in the questions.
- Including fixed costs in the marginal cost of a unit.
- Deducting fixed overhead before calculating contribution.
- Ranking products by contribution per unit when a limiting factor applies.
- Discontinuing a product that makes a positive contribution because absorption costing shows a loss.
- Getting the reconciliation the wrong way round when inventory rises.
- Forgetting the non-financial factors when a question asks for advice.
- Using marginal cost to value closing inventory in the financial statements.
Revise it first
If any of the above is unfamiliar, work through the notes before practising: Marginal costing revision notes.