ACCA MA Corrections

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Last updated 7:30 PM on 8/16/26
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5 Terms

1
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What are the advantages of marginal costing?

  • Costs are analysed by behaviour, improving cost understanding and control.

  • Marginal costing drives better short term decision making.

  • Marginal costing is less reliant on accurate forecasting of production volumes than absorption costing.

2
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Which of the following statements about Activity Based Costing are true?

1       It should provide more accurate product costs

2       It is a form of absorption costing

3       It should be used when there are low levels of overhead costs

4       It avoids all arbitrary allocation and apportionment of costs

1 and 2 only.

3
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Q1

4
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Q2

5
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