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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Which TWO of the following statements concerning marginal costing are TRUE?
A. Closing inventories are valued at full production cost.
B.
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.
O.C.
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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Febe020d4-f6d3-4816-bece-43b62e43513a%2F7f9c6d4f-6366-4bb3-990f-bc76ed0e90d8%2Fho6mlw5_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Which TWO of the following statements concerning marginal costing are TRUE?
A. Closing inventories are valued at full production cost.
B.
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.
O.C.
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.
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