Economics · Marginal vs Absorption Costing
A company using marginal costing in a period where production volume exactly equals sales volume will report a net profit that is:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Impossible to compare without knowing the fixed cost absorption rate.
- 2Equal to the profit calculated under absorption costing.✓
- 3Lower than the profit calculated under absorption costing.
- 4Higher than the profit calculated under absorption costing.
Correct answer
Equal to the profit calculated under absorption costing.
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