1.

What Are The Basic Assumptions Made By Marginal Costing?

Answer»

MARGINAL Costing is based on the following the basic assumptions

  • Variable cost varies in DIRECT proportion with the level of activity whereas per UNIT variable cost remains constant at all the LEVELS of activities.
  • Per unit selling price remains constant at all the levels of activities.
  • There are no variations DUE to the stock.

Marginal Costing is based on the following the basic assumptions


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