Choose the correct statements from the following: (1) Marginal costing and absorption costing are the same (2) For decision making, absorption costing is more suitable than marginal costing (3) Cost-volume-profit relatio

CS Executive · Cost and Management Accounting · PYQS · December 2015
Choose the correct statements from the following: (1) Marginal costing and absorption costing are the same (2) For decision making, absorption costing is more suitable than marginal costing (3) Cost-volume-profit relationship also denotes break-even point (4) Marginal costing is based on the distinction between fixed and variable costs. Correct answer option is —
(A) (1) and (2)
(B) (2) and (3)
(C) (3) and (4)
(D) (2) and (4).

Answer & Explanation:

Correct Answer: Option (C)

Official answer key: (C).

Topics: Costing Methods

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