Marginal costing, Cost Accounting

MARGINAL COSTING

As per the Chartered Institute of Management Accountants, London, the phrase 'Marginal cost' means - 'the amount at every given volume of output through which aggregate costs are altered if the volume of output is decreased or increased by one unit'. Marginal costing is a method where only the variable costs are considered whereas computing the cost of a product. The fixed costs are met in opposition to the total fund arising out of the excess of selling price over entire variable cost. This fund is known as 'CONTRIBUTION' in marginal costing. As per the Chartered Insitute of Management Accountants, London, 'Marginal costing' is a method where 'only the variable costs are charged to cost units, the fixed costs attributable being written off in completely against the contribution for that period'.

Posted Date: 10/15/2012 6:55:06 AM | Location : United States







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

Write discussion on Marginal costing
Your posts are moderated
Related Questions
McDaniel Company manufactures 100-pound bags of fertilizer that have the following unit standard costs for direct materials and direct labor: Direct Materials (100 lbs. @ $1.00

Place a prepared slide of Trypunosoma under tlic microscope and focus it under low power, You will observe large number of tiny spindle-shaped trypanosomes lying in the plasma alll

If a company trades in a building towards a new building and does not recognize a gain or loss (because of code section 1031), will this transaction affect the cash flows statement

Stopover industries ltd, a recently incorporated company plans to go into production next year. the following standard cost matrix has been assembled for one of the products it pro


Dividends                                                                                        ................ Non-operating losses not passed through P and L A/c

Candler Inc a computer software development firm has stock outstanding as follows: 40,000 shares of $2 nonparticipating, noncumulative preferred stock of $10 par, and 250,000 share

Q. Explain Break-even analysis? Cost-volume-profit (CVP) analysistracks that how profit changes when there are changes insales price, variable costs, fixed c

a company wants to buy a new machine to replace on which is having frequent breakdown.............. .......... c-the models suitable for different levels for demand of product?

(i) In terms of cashflow, which month will be the most costly for your project? (ii) If the 3rd and 4th months are more expensive by 25% each because the outsourced labour took