For decision making purpose, which is more suitable to the management
A)Standard costing
B)Marginal costing
C)Absorption costing
D)Traditional costing

Question

Quizplus · Accepted Answer

Marginal costing is more suitable for decision-making purposes because it helps in determining the impact of different levels of costs and volume on operating profit. It focuses on the costs that change with the level of output (variable costs) and is useful for short-term decision-making processes like pricing, make or buy decisions, and product mix decisions.

For Decision Making Purpose, Which Is More Suitable to the Management