Which of the following statements regarding marginal and absorption costing are true in the context of pricing decisions?
Select ALL that apply.

• A.Absorption costing is more appropriate for use in one-off pricing decisions.
• B.Marginal costing is appropriate for long-term pricing decisions.
• C.Absorption costing when used for pricing decisions includes the 'total-cost' of the product.
• D.Marginal costing is appropriate for short-term pricing decisions.
• E.Marginal costing is more appropriate for use in one-off pricing decisions.
• F.Marginal costing ensures the recovery of all costs incurred in selling prices.

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TDM edits, prints and publishes three magazines, Mag A, Mag B and Mag C. The company operates an activity-based costing system.
The following information has been obtained.

What is the overhead cost attributable for each Mag A publication?
Give your answer to the nearest whole cent.

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Which of the following statements is true?

• A.Standard costing is focused on delivering quality products to customers.
• B.Standard costing is focused on achieving zero defects.
• C.Standard costing embraces the philosophy of continual improvement.
• D.Standard costing is best suited to a stable environment.

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FGH used to manufacture components that required raw material Q.
Currently there are 80 kg of material Q in inventory.
The company has no use for the material in the foreseeable future and intends to sell it for scrap.
A potential new customer has asked for a price for a large order.
This order would require 100 kg of material Q.
The company management has decided to quote a price for this work on a relevant cost basis.
Details of costs for material Q are as follows:

What would be the relevant cost of Material Q to use in this order?

• A.$198
• B.$110
• C.$230
• D.$46

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The budgetary control report of XYZ for the latest period is shown below. Variances in brackets are adverse.

What is the sales volume profit variance?

• A.$38,200 adverse
• B.$78,900 adverse
• C.$37,200 adverse
• D.$18,700 favorable

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