Which of the Following Statements Is False

Multiple Choice

Which of the following statements is false?

A) One of the limitations of marginal costing is that it is difficult to assess profitability when there are limiting factors such as machine capacity
B) Marginal costing can identify the minimum selling price that would not produce a loss
C) Marginal costing focuses on how costs will behave as a result of changes in the volume of production
D) Marginal costing focuses on the contribution each product can make towards fixed costs and towards profit