Multiple choice

Directions: Choose the correct option for the given question.

Marginal costing helps in price fixation more in the period of

  1. inflation

  2. deflation

  3. depression

  4. boom

  5. all of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

During a depression, demand is low and competition is high. Marginal costing helps firms set prices that cover at least the variable costs, ensuring the business can continue to operate and contribute toward fixed costs.

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