Do the statements below relate to absorption costing or marginal costing?Required for inventory valuation under IAS 2
Absorption costing
B. Marginal costing
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Fixed costs treated as a period cost
Absorption costing
B. Marginal costing
Easier for managers to understand
Absorption costing
B. Marginal costing
Shows the lowest price at which a product can be sold in the long term
Absorption costing
B. Marginal costing
Pear Co manufactures a product that passes through one process, Process P. During the month of July, the following related to Process P.All losses have a scrap value of $1.25.What is the full cost value of the normal losses credited to Process P for July?
A. $500
B. $750
C. $1,000
D. $600