Accounting · Marginal Costing Principles
Which of the following statements regarding Marginal Costing is NOT true? I. In marginal costing, the valuation of closing stock includes only variable expenses. II. Marginal cost pricing may lead to general lowering of prices and thus potential losses in the long run. III. Under marginal costing, overheads are fundamentally classified according to functions as factory, administrative, selling, and distribution overheads. IV. The technique of Marginal Costing brings out the clear relationship between profit and volume of output. Choose the correct answer:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1II and III
- 2III only✓
- 3II only
- 4I, II and III
Correct answer
III only
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