Significance of Marginal Costing - MCQs with answers

Significance of Marginal Costing - MCQs with answers


1. Which of the following are advantages of marginal costing?

a) Makes the process of cost accounting more simple
b) Helps in proper valuation of closing stock
c) Useful for standard and budgetary control
d) All of the above

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ANSWER: d) All of the above



2. Managers utilizes marginal costing for

a) Make or buy decision
b) Utilization of additional capacity
c) Determination of dumping price
d) All of the above

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ANSWER: d) All of the above



3. The problems associated with marginal costing are

a) Difficulties in divisions of costs
b) Problem of valuation of stocks
c) Ignores time elements
d) All of the above

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ANSWER: d) All of the above



4. ___________ is not suitable where selling price is determined on the basis of cost-plus method.

a) Absorption costing
b) Marginal costing
c) Both a and b
d) None of the above

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ANSWER: b) Marginal costing


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