In managerial accounting,________ can be a reasonable approximation of marginal cost in many situations.
A) fixed cost
B) mixed cost
C) step cost
D) variable cost

Question

Quizplus · Accepted Answer

Variable costs represent the costs that change directly with the change in production or activity level. In managerial accounting, variable costs are often used as a reasonable approximation of marginal costs because they vary proportionally with the level of production. Therefore, D) variable cost is the best choice.

In Managerial Accounting,________ Can Be a Reasonable Approximation of Marginal