A: Fixed overheads are ignored in marginal costing. R: Marginal costing only considers variable costs for decision making. Choose the correct option. MCQ with Answer and Explanation
A: Fixed overheads are ignored in marginal costing. R: Marginal costing only considers variable costs for decision making. Choose the correct option.
A. A is false but R is true
B. Both A and R are true and R is the correct explanation of A
C. Both A and R are true but R is NOT the correct explanation of A
D. A is true but R is false
Answer: Option C
Solution (By JKSSB Mock Tests)
In marginal costing, fixed overheads are treated as period costs and are not included in the cost of production. This is because marginal costing focuses on variable costs for short-term decision making. Both are true, but R is the underlying principle, not just an explanation of ignoring fixed costs.
Explanation:
Posting to the wrong account (error of principle or wrong personal account) keeps the debit and credit totals equal, so the trial balance still agrees.
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