Which is more appropriate to use in one-off pricing decision, Marginal Costing or Absorption Costing?
CIMA Forums
Other Costing | Chapter 2
Hello - thank you for your question.
The answer is marginal costing -ie just include the variable costs which are actually used in producing the one off product or contract.
This is supported by principles of relevant costing.
Let me know if you need further guidance
Many Thanks
Sign into reply to this topic.