Multiple choice

Directions: Choose the correct option for the given question.

Profit planning is possible with _____ costing.

  1. marginal

  2. absorption

  3. operation

  4. unit

  5. service
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Marginal costing is particularly useful for profit planning because it clearly shows the impact of changes in sales volume on contribution and profit, independent of fixed costs.

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