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Why is marginal costing considered useful for decision-making during periods of fluctuating production levels?
  • a)
    It provides a fixed cost allocation.
  • b)
    It focuses on variable costs and their impact on profit.
  • c)
    It includes all production costs.
  • d)
    It simplifies cost allocation.
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
Why is marginal costing considered useful for decision-making during p...
Marginal costing is useful for decision-making during fluctuating production levels because it emphasizes variable costs, making it easier to analyze the effects of changing production volumes on profitability.
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Why is marginal costing considered useful for decision-making during periods of fluctuating production levels?a)It provides a fixed cost allocation.b)It focuses on variable costs and their impact on profit.c)It includes all production costs.d)It simplifies cost allocation.Correct answer is option 'B'. Can you explain this answer?
Question Description
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