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MI – Nov 2020 – L1 – SA – Q9 – Costing Techniques

Determine when the profit under marginal costing equals that of absorption costing.

In which of the following will the profit of marginal costing equal absorption costing?

A. There is only closing stock

B. There is only opening stock

C. There is both opening and closing stock

D. There is no change in stock levels

E. There are lower fixed costs

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MI – Nov 2020 – L1 – SA – Q9 – Costing Techniques

Determine when the profit under marginal costing equals that of absorption costing.

In which of the following will the profit of marginal costing equal absorption costing?

A. There is only closing stock

B. There is only opening stock

C. There is both opening and closing stock

D. There is no change in stock levels

E. There are lower fixed costs

Login or create a free account to see answers

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