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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.
DIFFERENTIAL COSTING Marginal costing is often confused with differential costing. The word 'DIFFERENTIAL COSTING' means 'a technique used in the preparation of adhoc informati
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exercise solution
EFFECTIVENESS AUDITING is one type of internal audit. Describe and evaluate this type of internal audit. What types of organisation would it be most useful for? Required: 1)
i want to know the different types of costs.
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