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# MGT402 GDB last date 26/01/17

Marginal and absorption costing techniques always yield the same profit figures; do you agree with this statement? State your answer supporting with appropriate arguments.

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marginal cost is the sum of direct material cost, direct labor cost, direct expense cost(if any) and variable production cost.it's also costing technique used in decision making.

absorption costing is a method of building up a full product cost which adds direct cost and a proportion of production overhead costs by mean of one or a number of overhead absorption rate.

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