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    Question

    Marginal costing technique follows the following basis

    of classification:
    A Element wise Correct Answer Incorrect Answer
    B Function-wise Correct Answer Incorrect Answer
    C Behavior-wise Correct Answer Incorrect Answer
    D Identifiability-wise Correct Answer Incorrect Answer
    E All of the above Correct Answer Incorrect Answer

    Solution

    Marginal costing technique classifies costs based on their behavior. It distinguishes between variable costs, which vary with the level of production or activity, and fixed costs, which remain unchanged regardless of the level of production.

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