Of the Following Statements About Marginal Costing Which One or Both

question 13

Multiple Choice

Of the following statements about marginal costing which one or both are correct? Marginal costing:
(i) Provides a sounder basis for decision-making than absorption costing
(ii) Can be used only in businesses that incur variable costs

• A) (i) only
• B) (ii) only
• C) Neither of them
• D) Both of them

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Definitions:

Liquidated Damages

A predetermined amount of money that is agreed upon by parties in a contract to be paid as compensation in case of breach.

Plaintiff Claim

A statement or demand made in a lawsuit by the plaintiff, outlining the relief or damages sought from the defendant.

Damages Award

Financial compensation ordered by a court to be paid to a plaintiff by a defendant as reparation for harm or injury.

Fundamental Breach

A serious violation of a contract that permits the aggrieved party to terminate the agreement and sue for damages.