Accounting 9706 · AS & A Level · Traditional costing methods

Traditional costing methods — practice question

A business draws up its income statement under marginal costing. When it switches from marginal costing to absorption costing, profit falls. Which statement is correct?

  • AAll units produced in the period were sold.
  • BUnits sold were greater than units produced.
  • CUnits sold were fewer than units produced.
  • DThere were no units produced in the period.

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