Multiple choice

Directions: Choose the correct option for the given question.

_____ fails to establish relationship between cost, volume and profit.

  1. Marginal costing

  2. Service costing

  3. Unit costing

  4. Absorption costing

  5. Operation costing
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Absorption costing allocates fixed costs to products, which can obscure the relationship between cost, volume, and profit, unlike marginal costing which highlights these relationships.

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