BANK SEBI Grade A Phase 1 & Phase 2 Mock Test 2024 Accounting and Auditing Cost and Management Accounting
In the context of cost and management accounting, which of the following statements best describes "marginal costing"?
1
It is a costing technique where fixed costs are treated as period costs and variable costs are charged to the product.
2
It is a costing method that includes both fixed and variable costs in product cost.
3
It is a method where only direct costs are charged to the product and indirect costs are excluded.
4
It is an approach that allocates overhead costs based on direct labor hours.
5
It involves the use of standard costs and variances for control purposes.