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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Question

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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