S1: Marginal costing distinguishes between fixed and variable costs. S2: Absorption costing distinguishes between fixed and variable costs. Which statement(s) is/are correct? MCQ with Answer and Explanation

Marginal costing strictly separates costs into fixed and variable components. Absorption costing (traditional costing) charges all manufacturing costs (both fixed and variable) to the product, without this strict separation for decision making. S1 is correct, S2 is incorrect.