Costing systems Accounting Session Quiz

What is the contribution calculated as in the operating statement?

• Sales - Fixed costs

• Sales - Variable costs

• Variable costs - Fixed costs

• Sales + Variable costs

Which type of costing adheres to IAS 2 for financial accounts?

• Marginal costing

• Absorption costing

• Both marginal and absorption costing

• Neither marginal nor absorption costing

Which costing method includes fixed manufacturing costs in product costs?

• Standard costing

• Marginal costing

• Absorption costing

• Variable costing

In which costing method are fixed costs treated as period costs?

• Marginal costing

• Process costing

• Absorption costing

• Job costing

What is the primary focus of marginal costing?

• Profit maximization

• Cost control

• Inventory valuation

• Decision making