What is the primary difference between marginal costing and absorption costing?Question 4Answera.Marginal costing considers both variable and fixed costs; absorption costing considers only variable costs.b.Marginal costing is used for external reporting; absorption costing is used for internal decision-making.c.Marginal costing includes fixed production overheads in product costs; absorption costing does not.d.Marginal costing treats fixed production overheads as period costs; absorption costing allocates them to inventory.

Absorption costing differs from marginal costing is the .a.amount of fixed costs that will be incurred.b.amount of costs assigned to individual units of products .c.kind of activities for which each can be used .d.fact that standard costs can be used with absorption costing but not with marginal costing

Marginal costing is a technique that focuses on the:a.Calculation of total costsb.Analysis of fixed costsc.Separation of variable costs from fixed costsd.Determination of profit marginsClear my choice

Production cost under marginal costing includes .a.prime cost and fixed overhead .b.prime cost, variable overhead and fixed overhead.c.prime cost only .d.. prime cost and variable overhead.

What is the impact on profit when closing inventory decreases under absorption costing compared to marginal costing?Question 7Answera.Profit fluctuates depending on sales volumeb.Profit is higher under absorption costingc.Profit is lower under absorption costingd.Profit remains the same under both costing methods

In marginal costing, which of the following costs are included in product costs?Question 8Answera.Variable selling costsb.Direct materials and direct laborc.Fixed production overheadsd.Direct materials, direct labour and variable selling costs