Which of the following cost- behaviour oriented approach to product costing.... (a) absorption cost (b)process costing (c) marginal costing (d) job order costing
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Answer:
options c
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The cost-behavior-oriented approach to product costing is marginal costing (option c).
- Full costing, as well as variable costs based on marginal product, are combined in marginal costing.
- The cost of a marginal unit, which might be one more or one fewer unit produced throughout the manufacturing process, is the subject of marginal costing.
- Because it fluctuates (increases or decreases) dependent on the amount of output of production or sales, it is a cost-behavior-oriented strategy.
- This strategy is not included in the other costing methods listed in the question.
- As a result, marginal costing is the correct answer.
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