The following information is available for the month of November:Which of the TWO following statements are true for November?
A. Profit will be higher under marginal costing than under absorption costing
B. Profit will be the same under both absorption and marginal costing
Closing inventory valuation will be higher under absorption costing than marginal costing
D. Opening inventory valuation will be higher under absorption costing than marginal costing
查看答案
Do the statements below relate to absorption costing or marginal costing?Required for inventory valuation under IAS 2
Absorption costing
B. Marginal costing
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
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