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Option 4 : A, B, and C only
The correct answer is A, B, and C only
Marginal Costing:
- The term "marginal cost" describes the rise or fall in price associated with producing or providing services to an additional consumer. It is also known by the name incremental cost.
- The concept technically refers to additional charges that are added to the manufacturing cost as a result of more unit (s)
- Marginal Cost (MC) = (Change in Total Costs) / (Change in Quantity)
Assumption Of Marginal Costing
- There is a segregation of cost into fixed and variable cost.
- The volume of goods produced is the only factor which influences the cost.
- The selling price is constant.
- Selling price is not influenced by change in volume, competition, etc.
- The fixed cost is constant.
- The variable cost per unit is constant.
- There is no closing stock.
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