Which statements about marginal costing are correct?
1- It enables a business to make the best use of its resources when there is a limiting factor.
2- It ensures that decisions taken are based upon the total cost of producing a product.
3- It takes into account apportionment of service costs to production cost centres.
4- It usually leads to a lower inventory valuation than absorption costing.
1 and 4 only
2 )
1, 2 and 4
3 )
2 and 3
4 )
3 and 4 only
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