Accounting · Cost Accounting
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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- 1Higher than the profit calculated under absorption costing
- 2Lower than the profit calculated under absorption costing
- 3Equal to the profit calculated under absorption costing✓
- 4Impossible to compare without knowing the fixed cost absorption rate
Correct answer
Equal to the profit calculated under absorption costing
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