Multiple choice

Directions: Choose the correct option for the given question.

Marginal costing and _____ analysis helps in decision-making.

  1. service costing

  2. unit costing

  3. differential costing

  4. absorption costing

  5. none of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Differential costing involves analyzing the difference in costs between two alternatives. It is used alongside marginal costing to evaluate the financial impact of specific management decisions.

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