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A business uses marginal costing to calculate variances. If they were to use absorption costing the sales volume variance would be:-
A. Higher or the same
B. Lower or the same
C. the same.
D. Different but not able to say higher or lower.This question is from the Kaplan revision kit. According to that the answer is A. but when i numerically try it out, the variance is always lower. (Since contribution>profit). So shouldn’t the answer be B? Is there an error in this question? Otherwise, how is it A?
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