Multiple choice

Directions: Choose the correct option for the given question.

Marginal costing is the aggregate of _____ plus variable overheads.

  1. work cost

  2. variable cost

  3. prime cost

  4. cost of production

  5. cost of sales
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Marginal cost is defined as the sum of prime costs (direct material, direct labor, and direct expenses) plus variable overheads.

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