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1. The following explanation relates to marginal costing. EXCEPT a. A method of costing where all variable cost are included in stock valuation. b. Fbed production costs are not allocated to the product. c. Marginal costing is used in the short run decision making. d. It is also known as direct costing [1 mark] 2. One of the primary differences between marginal and absorption costing is that a. marginal costing, companies charge the fixed manufacturing overhead as an expense in the current period. b. absorption costing. companies charge the fixed manufacturing overhead as an expense in the current period. c. marginal costing. companies charge the variable manufacturing overhead as an expense in the current period. d. absorption costing, companies charge the variable manufacturing overhead as an expense in the current period. [1 mark] 3. In comparison, net income under absorption costing is higher than net income under marginal costing a. when units produced exceed units sold. b. when units produced equal units sold. c. when units produced are less than units sold. d. regardiess of the relationship between units produced and units sold. [1 mark] 4. Ahmad Co. sells its product for RM70 per unit. During 2019, it produced 60,000 units and sold 50,000 units (there was no beginning inventory). Costs per unit are direct materials RM13, direct labour RM10, and variable overhead RM4. Fixed costs are RM600,000 manufacturing overhead, and RM100,000 seling and administrative expenses. Cakculate the manufacturing cost per unit under absorption costing. Show all workings. a. RM24. b. RM27. c. RM37. d. RM40. [2 marks] 5. Ahmad Co. sells its product for RM70 per unit, During 2019, it produced 60,000 units and sold 50,000 units (there was no beginning inventory). Costs per unit are direct materials RM13, direct labour RM10, and variable overhead RM4. Foced costs are RM600,000 manufacturing owerhead, and RM100,000 seling and administrative expenses. Calculate the cost of goods sold at absorption costing. Show all workings

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