## The problems associated with marginal costing are A     Difficulties in divisions of costs B      Problem of valuation of stocks C      Ignores time elements D     All of the above

1. d) All of the above

d) All of the above

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## ___________ is not suitable where selling price is determined on the basis of cost-plus method A     Absorption costing B      Marginal costing C      Both a and b D     None of the above

1. b) Marginal costing

b) Marginal costing

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## Under absorption costing, managerial decisions are based on A     Profit B      Contribution C      Profit volume ratio D     None of the above

1. a) Profit

a) Profit

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## Marginal costs is taken as equal to A     Prime Cost plus all variable overheads B      Prime Cost minus all variable overheads C      Variable overheads D     None of the above

1. a) Prime Cost plus all variable overheads

a) Prime Cost plus all variable overheads

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## If total cost of 100 units is Rs 5000 and those of 101 units is Rs 5030 then increase of Rs 30 in total cost is A     Marginal cost B      Prime cost C      All variable overheads D     None of the above

1. a) Marginal cost

a) Marginal cost

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## Marginal cost is computed as A     Prime cost + All Variable overheads B      Direct material + Direct labor + Direct Expenses + All variable overheads C      Total costs – All fixed overheads D     All of the above

1. a) Prime cost + All Variable overheads

a) Prime cost + All Variable overheads

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## Under High and Low Point method, the output at two different levels is compared with the amount of __________ incurred at these two points A     Total fixed costs B      Total costs C      Total fixed costs D     None of the above

1. b) Total costs

b) Total costs

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## In Analytical method of calculating marginal costing, it is determined on the basis of past records A     True B      False

1. a) True

a) True

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## When contribution is positive but equal to fixed cost, A     There is loss equal to fixed costs B      There is loss more than fixed costs C      There will be loss less than fixed costs D     There will be neither profit not loss

1. d) There will be neither profit not loss

d) There will be neither profit not loss

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## Opportunities to achieve further growth within current businesses are: A     Intensive Opportunities B      Integrative Opportunities C      Diversification Opportunities D     None of the above

1. a) Intensive Opportunities

a) Intensive Opportunities

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