Multiple choice

Directions: Choose the correct option for the given question.

In marginal costing, stock of finished goods is valued at

  1. fixed cost

  2. market price

  3. cost price

  4. variable cost

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

Under marginal costing, finished goods inventory is valued only at variable production costs, excluding any allocation of fixed manufacturing overheads.

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