Economics · Marginal Costing
Which of the following are recognized as limitations of the Marginal Costing technique? 1. The process of segregating costs into fixed and variable categories is complex and involves a high degree of subjectivity. 2. It is not considered an acceptable method for inventory valuation and external financial reporting under GAAP or AS-2. 3. It assists in the long-run pricing of products by ensuring all costs, including fixed overheads, are fully recovered. 4. In industries that are capital-intensive and have high fixed costs, the technique may provide misleading management signals. Choose the most appropriate answer from the options given below:
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1, 2 and 4 Only
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