Marginal costing is useful for which important management accounting function?

Question

Quizplus · Accepted Answer

Marginal costing is useful for decision-making as it helps in determining the contribution made by each product towards covering fixed costs and making profits. This helps in deciding on the price of the product, the product mix, and whether to discontinue any unprofitable products. While it can also be used for planning, budgeting, and control, its primary function is in decision-making.

Marginal Costing Is Useful for Which Important Management Accounting Function