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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.
Purposes of Overhead Cost Analysis There are a number of situations whether the analysis of overhead costs will assist in the satisfactory evaluation of the relevant cost data
Expenses are usually recorded only while they are paid. The failure to record unpaid expenses in the accounts outcomes in an understatement of which expense and also an understatem
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advantage of physical measure
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Analysis of stockholders equity: Star Corporation issued both common and preferred stock during 19X6. The stockholders' equity sections of the company's balance sheets at the
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