Which TWO of the following statements concerning marginal costing are TRUE? A. Closing inventories are valued at full production cost. OB. Fixed costs are treated as a period cost and are charged in full to the income statement of the accounting period in which they are incurred. OC. Marginal cost is the cost of a unit which would be avoided if that unit were not produced. OD. Contribution is calculated as sales revenue plus all variable costs.

Which TWO of the following statements concerning marginal costing are TRUE? A. Closing inventories are valued at full production cost. OB. Fixed costs are treated as a period cost and are charged in full to the income statement of the accounting period in which they are incurred. OC. Marginal cost is the cost of a unit which would be avoided if that unit were not produced. OD. Contribution is calculated as sales revenue plus all variable costs.

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter12: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 4SEQ: For which cost concept used in applying (he cost-plus, approach to product pricing are fixed...

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