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Question

Economics Question on Estimation and Costing

The technique in which only variable costs are taken into Account for the purpose of product costing, inventory valuation and other allied important management decisions is known as :

A

Absorption costing

B

Marginal costing

C

Standard costing

D

Job costing

Answer

Marginal costing

Explanation

Solution

The correct answer is (B) : Marginal costing.