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Comparison between Marginal Costing and Absorption Costing
There are accountants who favour all costing method.
Arguments in favour about absorption costing are specified as:
Arguments in favour about marginal costing are specified as:
Obviously, the choice of method does not have to be between marginal costing and absorption costing. Now we looked at ABC like an alternative to absorption costing. Attributable contribution costing is one more alternative. This includes attributing certain fixed costs to the activities that cause them and then utilizing marginal costing to compute a contribution for every activity, the surplus of contribution over attributable fixed costs being known like attributable contribution.
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