DPA5023 : TOPIC MARGINAL & ABSORPTION COSTING

Marginal costing is known as Full Costing.

• TRUE

• FALSE

Total sales is derived from Selling Price Per Unit X Unit produced.

• TRUE

• FALSE

Cost per unit under Marginal Costing is higher than Absorption Costing

• TRUE

• FALSE

Contribution margin can be derived from Absorption Costing

• TRUE

• FALSE

Absorption costing is suitable for internal reporting.

• TRUE

• FALSE

Absorption Costing does complies with GAAP.

• TRUE

• FALSE

Marginal Costing only taken into account all variable production cost.

• TRUE

• FALSE

Under Absorption Costing, the non-production fixed costs are treated as period costs

• TRUE

• FALSE

Under Marginal Costing, all fixed costs are treated as period costs

• TRUE

• FALSE

Absorption Costing is not relevant for decision making.

• TRUE

• FALSE