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

Costs and cost behaviour — practice question

Which statement supports the use of marginal costing?

  • AInternational accounting standards require use of marginal costing.
  • BMarginal costing data enables the use of decision-making techniques.
  • CSetting selling prices is made easier under marginal costing because all costs are considered.
  • DThe distinction between fixed and variable overheads under marginal costing is no longer relevant.

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