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Why is marginal costing considered a valuable tool for optimizing cash flow in financial modeling?
  • a)
    It simplifies cost allocation.
  • b)
    It focuses on fixed costs.
  • c)
    It helps in calculating contribution margin.
  • d)
    It accounts for changes in variable costs with production volume.
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
Why is marginal costing considered a valuable tool for optimizing cash...
Marginal costing is valuable for optimizing cash flow in financial modeling because it accounts for changes in variable costs with production volume, providing insights into how cash flow can be managed effectively as production levels change.
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Why is marginal costing considered a valuable tool for optimizing cash flow in financial modeling?a)It simplifies cost allocation.b)It focuses on fixed costs.c)It helps in calculating contribution margin.d)It accounts for changes in variable costs with production volume.Correct answer is option 'D'. Can you explain this answer?
Question Description
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