Multiple choice

Directions: Choose the correct option for the given question.

______ is the system most useful for making make or buy decisions.

  1. Operation costing

  2. Marginal costing

  3. Unit costing

  4. Service costing

  5. Absorption costing
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Marginal costing is ideal for make or buy decisions because it focuses on the relevant costs (variable costs) that change with the decision, ignoring fixed costs that remain the same.

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