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Which statements about marginal costing are correct?
1. The marginal cost of a product involves an allowance for fixed overheads.
2. The marginal cost of a product presents the additional cost of making one extra unit.
3. If inventory decreases throughout a period, the profits under absorption costing will be lower than under marginal costing.
A. 1 only
B. 1, 2 and 3
C. 2 only
D. 2 and 3 only
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