According to absorption costing method, the cost of product is determined after considering.

Fixed costs

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Variable costs

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Marginal costs

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Both (A) and (B)

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Solution

The correct option is C Both (A) and (B)
Absorption costing technique is also termed as Traditional or Full Costing Method.
The Cost of a product is determined, after considering both fixed and variable costs.

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Calculate Total Variable Cost and Marginal Cost from the following cost schedule of a firm whose Total Fixed Costs are Rs. 12 :

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