Marginal costing, Accounting Basics

Which statements about marginal costing are correct?

1. The marginal cost of a product involves an allowance for fixed overheads.

2. The marginal cost of a product presents the additional cost of making one extra unit.

3. If inventory decreases throughout a period, the profits under absorption costing will be lower than under marginal costing.

A. 1 only 

B. 1, 2 and 3 

C. 2 only 

D. 2 and 3 only

Posted Date: 2/13/2013 12:39:04 AM | Location : United States







Related Discussions:- Marginal costing, Assignment Help, Ask Question on Marginal costing, Get Answer, Expert's Help, Marginal costing Discussions

Write discussion on Marginal costing
Your posts are moderated
Related Questions
2. One never goes alone, hens operation research employs different tools to accomplish: its own tasks, discus each and every tool employed by or throughout its doers.

Mohan brothers invoiced goods to their branch at cost plus 33.33%. All the cash collected by branch is banked on the same day to the credit of head office. All expenses are paid by

Q. Explain about stable dollar assumption? In the United States accountants make one more assumption regarding money measurement that the stable dollar assumption. Under the st

Cash Book: It is one of the Subsidiary Book which is usually used by any business organisation to record all the cash transactions which helps to know the cash position as and when


Q. Consistency in accounting principle? Consistency necessitates that a company use the same accounting principles and reporting practices through time. Consistency makes possi

In Exhibit the accurately stated ending inventory for the year 2009 is USD 35000. As a result Allen has a gross margin of USD 135000 as well as net income of USD 50000. The stateme

TYPES OF FINANCIAL ANALYSIS a) According to the material used, the study can be - i) External analysis : Where analysis is done by exterior interested parties and  ii)

A good purchased for $480 sells for $700. If the store's operating expenses are 30% of cost, what is the percentage markup on cost? A. 1.5% B. 10.57% C. 15.83% D. 4

Harry and Sally were divorced three years ago. In July of the current year, their son, Joe, broke his arm falling out of a tree. Joe lives with Sally and Sally claims him as a de