Marginal Costing-Quiz to test your Knowledge !
Marginal cost may be understood as the change in the total cost when the quantity produced is incremented by one. In simple words, it is the cost of producing one more unit of a good.
Marginal cost is the increase or decrease in the total cost a business will incur by producing one more unit of a product or serving one more customer. Marginal cost of production decreases as the volume of output increases because of economies of scale. Costs are lower because you can take advantage of discounts for bulk purchases of raw materials, make full use of machinery, and engage specialized labour. In marginal costing, fixed costs are never charged to production. They are treated as period charge and is written off to the profit and loss account in the period incurre
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- Question 1 of 10
1. Question1 points
Which of the following costing method fixed factory overheads are added to inventoryCorrectIncorrect
- Question 2 of 10
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Which of the following is known as full costingCorrectIncorrect
- Question 3 of 10
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Which of the following formula is not used for calculating contributionCorrectIncorrect
- Question 4 of 10
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Which of the following lines make the angle of incidence , in a break-even chartCorrectIncorrect
- Question 5 of 10
5. Question1 points
The costing method in which fixed factory overheads are added to inventory areCorrectIncorrect
- Question 6 of 10
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Absorption costing is concerned with which of the followingCorrectIncorrect
- Question 7 of 10
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Contribution is known asCorrectIncorrect
- Question 8 of 10
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Which of the following reduces the possibility of under pricingCorrectIncorrect
- Question 9 of 10
9. Question1 points
The y-axis on a break-even chart has which of the following labelsCorrectIncorrect
- Question 10 of 10
10. Question1 points
Which of the following is shown on break-even chart, but not on a profit/volume chartCorrectIncorrect