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Practice Questions
Test your understanding with targeted questions related to the topic.
Question 1
Easy
What is the main limitation of marginal costing related to fixed costs?
💡 Hint: Think about the different types of costs involved.
Question 2
Easy
Explain why marginal costing is not suitable for long-term financial planning.
💡 Hint: Remember that fixed costs must be factored into pricing.
Practice 1 more question and get performance evaluation
Interactive Quizzes
Engage in quick quizzes to reinforce what you've learned and check your comprehension.
Question 1
Marginal costing ignores which type of cost?
- Fixed Costs
- Variable Costs
- Both
💡 Hint: Think about the costs that remain constant.
Question 2
True or False: Marginal costing is suitable for long-term planning.
- True
- False
💡 Hint: Consider the nature of fixed costs.
Solve and get performance evaluation
Challenge Problems
Push your limits with challenges.
Question 1
A company is using marginal costing to assess a new product with significant fixed overheads. Discuss the potential outcomes of this approach.
💡 Hint: Think about the overall expenses involved in production.
Question 2
Evaluate how linear cost behavior assumptions in marginal costing might lead to poor decision-making in fluctuating markets.
💡 Hint: Consider how costs can change based on production levels.
Challenge and get performance evaluation