Differential costing, Cost Accounting

DIFFERENTIAL COSTING

Marginal costing is often confused with differential costing. The word 'DIFFERENTIAL COSTING' means 'a technique used in the preparation of adhoc information where only cost and income differences between alternate courses of action are taken into consideration'. Therefore, while decision making; only an option with overall gain are selected.  The term 'differential cost' means the gross increase or decrease in total costs resulting from a difference in production. The differential cost is known as 'incremental cost' while the cost increases and 'decremental cost' while the cost decreases.

Posted Date: 10/15/2012 6:56:08 AM | Location : United States







Related Discussions:- Differential costing, Assignment Help, Ask Question on Differential costing, Get Answer, Expert's Help, Differential costing Discussions

Write discussion on Differential costing
Your posts are moderated
Related Questions
Determine the Incremental Cost A company currently makes a component that has the given unit cost structure Direct Material Shs. 100

Reserves and surplus or retained earnings usually occur out of profitable operations. This is a surplus not distributed through the firm as dividends. Conversely, these are profits

First in First Out or FIFO FIFO method is based upon the assumption such stock purchased first is issued first. Prices of stock purchased first are employed to determine the v

The next year's budget for Benny, Inc., is given below: Product 1 & 2 Sales $945,000 & 688500 Variable costs 459,900 & 297,000 Fixed costs 300

full explanation on cost concept and classification

Critically evaluate the product costing and pricing practices actually in use in modern manufacturing organisations inany of the three countries in the Asia Pacific region, prefera

Dropping a segment - George's Grill analyzes profitability of three operating units: restaurant, bar, and billiards room. Revenues, variable costs, and attributable fixed costs (wh

A foreign company plans to clear several dozen acres of ecologically valuable mangrove swamp in Vietnam for the creation of a shrimp aquaculture facility.  This decision will creat

Implementation of Re-Apportionment of Overheads The re-apportionment of service department costs may be implemented in a number of methods. The Two extremes are as a) Wh

NSC Ltd. has a 31 May fiscal year-end. NSC disposed of its Information Systems Group (ISG) on 31 January 20X3. ISG had a net loss (after taxes) of $37,700,000 in 20X3, to the date