Marginal cost is the additional cost of producing an additional unit. It is nothing but variable cost. It comprises direct materials, direct labour and variable overheads. The C.I.M.A. London has defined marginal cost as - "the amount at any given volume of output by which aggregate costs are changed, if volume of output is increased or decreased by one unit." [...]
Everything you need to know about cost accounting. Cost Accounting is the process of accounting for costs. It begins with the recording of income and expenditure and ends with the preparation of periodical statements. The terms 'Costing' and 'Cost Accounting' are often used interchangeably. But there is a little difference between the two. Costing simply means cost finding by any [...]
Everything you need to know about standard costing. Standard costing is a technique of cost control. The CIMA Official Terminology defines it as "a control technique which compares standard costs and revenues with actual results to obtain variances which are used to stimulate improved performance." Standard cost is a planned cost for a unit of product, component or service produced [...]