Absorption costing and marginal costing, Cost Accounting

Assignment Help:

Absorption Costing and Marginal Costing

Product costs are costs identified along with goods produced or purchased for resale. That costs are initially identified like part of the value of stock and only become expenses while the stock is sold.  In contrast, period costs are costs such are deducted like expenses during the recent period without ever being involved in the value of stock held.  We noticed how product costs are absorbed into the cost of units of output.  Now we describe marginal costing and compare it along with absorption costing. Where absorption costing distinguishes fixed costs generally fixed production costs like part of the cost of a unit of output and thus as product costs, marginal costing treats all fixed costs like period costs. Two different costing such methods obviously all have their supporters and we will be looking at the arguments both in favor of and against all method. Each costing method, since of the different stock valuation employed, produces a different profit figure and we will be looking at this exacting point in detail.


Related Discussions:- Absorption costing and marginal costing

What is a statement of cash flows, 1.What is a Statement of Cash Flows? How...

1.What is a Statement of Cash Flows? How does it differ from an Income Statement? 2.What unique information does the Statement of Cash Flows deliver to investors? Why do they care?

Computerized packages, types of computerized packages .its cost .features s...

types of computerized packages .its cost .features size of the business is intended to service

Calculate the retained profit, Harriet Ltd is a trading company set up a nu...

Harriet Ltd is a trading company set up a number of years ago with 5,000 £1ordinary shares issued at par. In order to expand the production facilities it needs to raise a further £

cost behavior, Total fixed cost at different level of productio

Total fixed cost at different level of production

Standard costing and variance analysis using kaizen costing, Discuss how SD...

Discuss how SD can use standard costing and variance analysis to prepare meaningful reports when using Kaizen Costing. By the use of standard costing and variance analysis, fr

Difference between cost accounting and financial accounting, The difference...

The difference among "cost accounting" and "financial accounting are terms demote to the accounting techniques used internally by a company's management to explain the costs of run

Change in useful life for deperciation, A machine originally had an estimat...

A machine originally had an estimated useful life of 5 years, but after 3 complete years, it was decided that the original estimate of useful life should have been 10 years. At tha

Goal congruence - behavioural aspects of standards, Goal Congruence - Behav...

Goal Congruence - Behavioural Aspects of Standards A perfect variance analysis and standard costing system must enhance goal congruence between as: i. The goal of individua

Division operating income, All  transfer-pricing  methods  give  the  sim...

All  transfer-pricing  methods  give  the  similar division  operating  income.  Do  you  agree? Describe.

Organization of budgetary control, Organization of Budgetary Control B...

Organization of Budgetary Control Budgetary control ideally includes the given steps as: 1. The creation of budget centres. 2. The introduction of sufficient

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd