[amp_mcq option1=”fixed” option2=”variable” option3=”Both A and B” option4=”None of these” correct=”option2″]<\/p>\n
The correct answer is: B. variable costs<\/strong><\/p>\n Marginal costing is a cost accounting method that focuses on the costs that vary with the production volume. Variable costs are those that change in proportion to the volume of production. Examples of variable costs include direct materials, direct labor, and variable overhead.<\/p>\n Fixed costs are those that do not change with the production volume. Examples of fixed costs include plant depreciation, property taxes, and insurance.<\/p>\n Under marginal costing, only variable costs are charged to products. This is because variable costs are the only costs that are directly related to the production of a product. Fixed costs are not charged to products because they are not directly related to the production of a product.<\/p>\n Marginal costing is a useful tool for decision-making. It can be used to determine the break-even point, to calculate the contribution margin, and to make decisions about pricing and product mix.<\/p>\n Here is a brief explanation of each option:<\/p>\n [amp_mcq option1=”fixed” option2=”variable” option3=”Both A and B” option4=”None of these” correct=”option2″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[952],"tags":[],"class_list":["post-58463","post","type-post","status-publish","format-standard","hentry","category-costing","no-featured-image-padding"],"yoast_head":"\n\n