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

Costs and cost behaviour — practice question

Which of the following statements regarding marginal costing are correct? $1$ Calculations use both fixed costs and variable costs only. $2$ Calculations use variable costs only. $3$ Its use should be limited to long-term planning decisions only. $4$ Its use should be limited to short-term planning decisions only.

  • A$1$ and $3$
  • B$1$ and $4$
  • C$2$ and $3$
  • D$2$ and $4$

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