Which of the following is NOT a benefit of using marginal costing?
Practice Questions
Q1
Which of the following is NOT a benefit of using marginal costing?
Simplifies decision-making
Helps in cost control
Provides detailed fixed cost analysis
Aids in pricing decisions
Questions & Step-by-Step Solutions
Which of the following is NOT a benefit of using marginal costing?
Step 1: Understand what marginal costing is. It is a costing method that focuses on variable costs and ignores fixed costs.
Step 2: Identify the benefits of marginal costing. Benefits include better decision-making for pricing, easier cost control, and simplified profit analysis.
Step 3: Recognize what is NOT a benefit. Marginal costing does not provide detailed analysis of fixed costs because it mainly looks at variable costs.
Step 4: Conclude that the lack of detailed fixed cost analysis is the correct answer to the question.
