Consider the following statements.
1. Marginal costing and absorption costing are the same.
2. For decision-making, absorption costing is more suitable than marginal costing.
3. Cost volume profit relationship also denote break-even point.
4. Marginal costing is based on the distinction between fixed and variable costs.
Which of the statements given above are correct?
A. Both 1 and 2
B. Both 2 and 3
C. Both 3 and 4
D. Both 4 and 2
Answer: Option C
Related Questions on Management Accounting
A. resourcing
B. value acquiring
C. production
D. value acquaintance
Examining of past performance, exploring alternative and planning future is
A. learning
B. alternating
C. examining
D. deciding
Time that a company takes to create and produce a new product is classified as
A. management factor
B. time factor
C. customer factor
D. chain factor
Purpose of management accounting is to
A. past orientation
B. help banks make decisions
C. help managers make decisions
D. help investors make decision
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