1. Under marginal costing the cost of product includes:
A) Prime costs only.
B) Prime costs and variable overheads. ✓
C) Prime costs and fixed overheads.
D) Prime costs and factory overheads.
CA Intermediate Paper 3
Marginal Costing MCQ
Chapter 14 • 10 Questions from ICAI Study Material
Questions
10
Est. Time
15 min
Source
ICAI Book
Question 1 of 10 0 correct | 0 wrong
Explanation:
Common Mistake:
Key Concept:
Exam Tip:
Keyboard: 1-4 to select, ← → to navigate
Sample Questions: Marginal Costing
Preview 3 of 10 questions from Chapter 14
2. Reporting under marginal costing is accomplished by:
A) Treating all costs as period costs.
B) Eliminating the work-in-progress inventory account.
C) Matching variable costs against revenue and treating fixed costs as period costs. ✓
D) Including only variable costs in income statement.
3. Period costs are:
A) Variable costs.
B) Fixed costs. ✓
C) Prime costs.
D) Overheads costs.