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Which of the following statements regarding marginal and absorption costing are true in the context...

Which of the following statements regarding marginal and absorption costing are true in the context of pricing decisions?

Select ALL that apply.

A.

Marginal costing is appropriate for long-term pricing decisions.

B.

Marginal costing is appropriate for short-term pricing decisions.

C.

Absorption costing when used for pricing decisions includes the 'total-cost' of the product.

D.

Marginal costing ensures the recovery of all costs incurred in selling prices.

E.

Marginal costing is more appropriate for use in one-off pricing decisions.

F.

Absorption costing is more appropriate for use in one-off pricing decisions.

CIMA P1 Summary

  • Vendor: CIMA
  • Product: P1
  • Update on: Jul 29, 2025
  • Questions: 260
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