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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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