Teaching EMRS Accountant Mock Test 2023 Accounting and Auditing Cost and Management Accounting Marginal Costing
Statement: Marginal costing is a method of cost accounting that focuses on the variable costs associated with producing one additional unit of a product or service.
Which of the following statements is/are true?
1
Marginal costing is only useful for manufacturing companies.
2
Marginal costing can be used to make decisions about pricing and production.
3
Marginal costing is the same as absorption costing.
4
Marginal costing is not a generally accepted accounting principle (GAAP)