Reference no: EM13530985
State whether the following statements are True or False:
1. Marginal cost includes prime cost plus fixed overheads.
2. Contribution is the difference between the selling price and the total costs.
3. An increase in the volume of the production will result in reduction in unit variable cost.
4. The amount of profit under absorption costing and marginal costing is one and the same.
5. All variable costs are included in the marginal cost.
6. Margin of safety is the difference between actual sales and the sales and the breakeven point.
7. The difference between the budgeted output and the actual output is known as margin of safety.
8. The breakeven point will be lower if the selling price is increased but the amount of cost does not change.
9. At breakeven point margin of safety is nil.
10. When fixed cost is deducted from total cost, we get marginal cost.