Which of the following statements are true?
(a) Marginal costing is not an independent system of costing.
(b) In marginal costing all elements of cost are divided into fixed and variable components.
(c) In marginal costing fixed costs are treated as product cost.
(d) Marginal costing is not a technique of cost analysis.

Related MCQs

• Which of the following are the assumptions of marginal costing? 1) All the elements of cost can be divided into fixed and variable components. 2) Total fixed cost remains constant at all levels of output. 3) Total variable costs vary in proportion to the volume of output. 4) Per unit selling price remain unchanged at all levels of operating activity.
• When selling price of product A is Rs.25 and product B is Rs. 20 and respective variable cost is Rs. 23 and Rs.16. The fixed cost is Rs.750, which of the following sales mix of product A and product B should be adopted to maximize the profit.
• The Moore Corporation is considering the acquisition of a new machine. The machine can be purchased for $90000; it will cost $6000 to transport to Moore’s plant and $9,000 to install. It is estimated that the machine will last 10 years, and it is expected to have an estimated salvage value of $5,000. Over its 10-year life, the machine is expected to produce 2,000 units per year, each with a selling price of $500 and combined material and labour costs of $450 per unit. Federal tax regulations permit machines of this type to be depreciated using the straight-line method over 5 years with no estimated salvage value. Moore has a marginal tax rate of 40%. What is the net cash flow for the tenth year of the project that Moore Corporation should use in a capital budgeting analysis?
• An indirect setup labor costs, costs of setup and equipment maintenance and costs of indirect material can be categorized as
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• The breakdown of cost of a component of a company is Material Rs.275, Labour Rs. 175 ,other Variable costs Rs.50 and Depreciation Rs.125. At what price the product should be available in the market so that company should buy from the market.
• When selling price is Rs.200 Per unit, Variable Cost Rs.150 per unit and Fixed Cost is Rs.50000 at which capacity level the cost per unit would be minimum.
• Direct material cost + direct labor cost + other variable costs is equal to…
• A department makes a product whose contribution per unit is £1,000, and which takes 20 hours machine time. A component used in this product with a marginal cost of £300 (taking 5 hours of machine time) could be purchased from an external supplier. The department is working at full capacity. What is the maximum price that the company may pay to buy the component from an external supplier?
• Determine B.E.P in units and amount if Units produced if Rs 10,000, Fixed cost is Rs 40,000, Selling price is Rs 50 per unit and Variable cost us Rs 30 per unit.