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
Contract Costing Terminology Principles of profit income recognition in contracts The Notional Profit This is a component of two items as: a) Profit taken   = Noti

10% of the finished castings were to be defective in manufacture and were rectified by expenditure of additional works overhead charges to the extent of 20% on the proportionate di

Labor Transactions (i) Wages Paid in cash (ii) Wages incurred like a) Direct labor or else b) Indirect labor  In the Financial Books  In

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

Absorption Costing The process described in this section by that net overheads are absorbed into production naturally enough is identified as absorption costing.  The absorpti

1) The Svelte Jeans Company produces two different types of jeans. One is called the "Simple Life" and the other is called the "Fancy Life". The company sales budget estimates that

Bakeson Bearings Ltd is preparing to submit a bid for a bearings order.  Janet Lake,  CEO of the Manufacturing Division, has asked Jason Docker, the management accountant, to prepa

What are investment appraisal methods when opening a new project?

Tyler's Consulting Company has purchased a new $15,000 copier. This overhead cost will be shared by the purchasing, accounting, and information technology departments since those a

Compute the predetermined overhead rate used during the year in the Preparation and Fabrication Departments.