Marginal costing - Assumptions

Q.  Which of the following are the assumptions of marginal costing?

A) All the elements of cost can be divided into fixed and variable components.
B) Total fixed cost remains constant at all levels of output.
C) Total variable costs varies in proportion to the volume of output.
D) Per unit selling price remain unchanged at all levels of operating activity.
- Published on 09 Sep 15

a. A and B
b. B and C
c. A and D
d. A, B, C and D

ANSWER: A, B, C and D

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