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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.
Following figures are taken from annual budget of ABC manufacturers for the year 2013: Fixed factory overhead Rs. 4,000,000 Factory overhead absorption rate Rs. 70 per direct labor
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If the net income under marginal costing is #100,000, calculate absorption costing, if opening and closing inventories are #20,000 and #15,000
How do I figure the estimated activity and estimated allocation base?
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Example of LIFO, FIFO and Weighted Average Method Suppose the following purchases were made in ABC Ltd as like: Date of purchase Units purchased Price/uni
There are different activities undertaken through a business that prove to be either source or use of cash. These can be categorizes under three broad categories that are: investin
7. The Isabelle Corporation rents prom dresses in its stores across the southern United States. It has just issued a five-year, zero-coupon corporate bond at a price of $74. You ha
under which type of asset the investment comes
LIMITATIONS OF COST ACCOUNTING Cost Accounting similar to additional branches of accountancy is not an precise science although is an art which was developed throughout theorie
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