Marginal costing and differential costing, Cost Accounting

MARGINAL COSTING AND DIFFERENTIAL COSTING

1.     Differential costing can be used both in case of marginal costing and absorption costing.

2.     In case of marginal costing, fixed costs are not included and just variable costs are measured while in the case of differential costs, both are measured.

3.     Separate analytical statements are created while calculating the differential costing while in the case of marginal costing, marginal costs may be included in the accounting itself.

4.     In the case of contribution, marginal costing and profit-volume proportion are the important yardsticks for performance valuation and decision-making. Whereas in the case of differential costing, differential costs are   evaluated with differential revenue for decision-making.

Posted Date: 10/15/2012 6:56:41 AM | Location : United States







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

Write discussion on Marginal costing and differential costing
Your posts are moderated
Related Questions
1. Issuance of stock Prepare journal entries to record the issuance of 100,000 shares of common stock at $20 per share for each of the following independent cases: a. Jacks

Process Cost Report This is a commonly employed statement that traces the flow of units produced and costs incurred in the production process. The report is prepared for every

(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

Shrinkage - Production Process This refers to a disappearance or loss of material inputs utilized throughout the production process. It happens mainly via the evaporation. Thi

what is the role of cost accounting in business

Shirley and Ken are in partnership, trading in the construction industry. The year end for the partnership business is 30 June. You are the Assistant Accountant and have been as

Direct and Indirect costs Recall such direct costs are costs which can be traced particularly to the end product of the production procedure while indirect costs cannot be so

tell me about debentures

Requirement for additional Funds A business would require additional capital for two purposes: 1. Financing additional fixed assets, and

Factors affect Decision Making These decisions need consideration of factors as like A. The level of market possible to be available in future B. The strategy that compe