A-LevelAccountingTraditional costing methods9706/12 · Feb/Mar 2021 · Q261 Mark

Which situation is not usually suitable for the use of marginal costing?

Anegotiating a regular selling price with a customer

Bquoting a selling price for a special order

Cwhen there is a shortage of direct material for the next month

Dwhether to make or buy-in a product

✓ Correct answer

A: negotiating a regular selling price with a customer

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Topic: Traditional costing methods, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Feb/Mar 2021 Paper 1 Variant 2, question 26.

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