Which one Absorption or Marginal costing?

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How to decide to choose absorption costing or marginal costing?
Based on what these two are being chosen to figure out profit?

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  • PeterC
    PeterC Registered, Tutor Posts: 245 Dedicated contributor 🦉
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    It depends what you want to use the cost for. Marginal costing is usually used for decision-making. Absorption costing is used to calculate inventory value and cost of goods sold and may be used for pricing. Exam questions usually say which you should use.
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