- 1 Marks
MI – Mar-Jul 2020 – L1 – SA – Q9 – Costing Techniques
Identify the statement that is not an argument for using marginal costing in routine costing.
Question
Which of the following is NOT an argument for the use of marginal costing in routine costing?
A. Simple to operate
B. Apportionment of fixed costs is avoided
C. Under or over absorption of overheads is almost entirely avoided
D. Inventory valuation at full production costs is in line with accounting standards
E. Fixed costs are incurred on a time basis and do not relate to activity
Find Related Questions by Tags, levels, etc.
- Tags: Cost Management, Marginal Costing, Routine Costing
- Level: Level 1
- Topic: Costing Techniques
- Series: MAR/JULY 2020
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