# Question $11$:

What is a potential disadvantage of using marginal costing for external financial reporting?

A$)$ It provides detailed information on fixed and variable costs

B$)$ It may not comply with Generally Accepted Accounting Principles $($GAAP$)$

C$)$ It simplifies the decision$-$making process

D$)$ It enhances managerial control

$**$Answer:$**$ B$)$ It may not comply with Generally Accepted Accounting Principles $($GAAP$)$

### Question $12$:

In a situation where demand is highly elastic, what pricing strategy would likely be most effective?

A$)$ Increasing prices to maximize contribution margin