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Questions and Answers
What type of costs are excluded from costs and taken as expenses in the Profit and Loss Account?
What type of costs are excluded from costs and taken as expenses in the Profit and Loss Account?
- Marginal costs
- Contribution costs
- Fixed costs (correct)
- Variable costs
In marginal costing, how are products transferred from one process to another valued?
In marginal costing, how are products transferred from one process to another valued?
- At fixed costs only
- At variable costs only
- At marginal costs only (correct)
- At total costs only
What is the basis for determining prices in the context of marginal costing?
What is the basis for determining prices in the context of marginal costing?
- Variable cost and fixed cost
- Contribution margin and fixed cost
- Total cost and contribution margin
- Marginal cost and contribution margin (correct)
How is the profitability of departments, products, etc., determined in marginal costing?
How is the profitability of departments, products, etc., determined in marginal costing?
How does the difference in the magnitude of opening stock and closing stock affect unit cost according to the text?
How does the difference in the magnitude of opening stock and closing stock affect unit cost according to the text?
What is the definition of 'marginal cost'?
What is the definition of 'marginal cost'?
In marginal costing, how are variable costs treated?
In marginal costing, how are variable costs treated?
What is the basis of categorizing costs in marginal costing?
What is the basis of categorizing costs in marginal costing?
Why are fixed costs not included in product cost in marginal costing?
Why are fixed costs not included in product cost in marginal costing?
What is another name for marginal costing?
What is another name for marginal costing?
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