Accounting 9706 · AS & A Level · Costs and cost behaviour

Costs and cost behaviour — practice question

Which type of situation is generally unsuitable for using marginal costing?

  • Anegotiating a regular selling price with a customer
  • Bquoting a selling price for a special order
  • Cwhen there is a shortage of direct material for the next month
  • Dwhether to make or buy-in a product

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