Accounting 9706/23 May June 2015 | Cambridge AS Level Past Papers With Mark Scheme

1. Preparation of manufacturing and income statements, incorporating adjustments for inventory, depreciation, and expense apportionment between factory and office.

2. Calculation of financial ratios including inventory turnover, trade receivables turnover, trade payables turnover, non-current asset turnover, and current ratio for performance evaluation.

3. Marginal and absorption costing for income statement preparation, analyzing the impact of production and sales variances on profits.

4. Reconciliation of profits between marginal and absorption costing, emphasizing fixed overhead allocation and inventory valuation differences.

5. Comparison of business expansion options, evaluating advantages and disadvantages of forming a partnership versus a private limited company.

6. Analysis of operational efficiency, highlighting deviations in inventory and credit terms relative to standard benchmarks for management decision-making.