Tag Archives | Applications of Marginal Costing

Top 5 Applications of Marginal Costing | Cost Accounting

The following points highlight the top five applications of marginal costing. The applications are: 1. Key or Limiting Factor Analysis 2. Make or Buy Decisions 3. Discontinuance and Diversification of Product 4. Accept or Reject New Order and Sub-Contracting 5. Temporary Cessation or Close-Down of Operations. Application # 1. Key or Limiting Factor Analysis: Marginal […]

Top 4 Applications of Marginal Costing | Cost Accounting

The following points highlight the top four applications of marginal costing. The applications are: 1. Cost Control 2. Profit Planning 3. Evaluation of Performance 4. Decision Making. Marginal Costing: Application # 1. Cost Control: Marginal costing divides the total cost into fixed and variable cost. Fixed cost can be controlled by the top management and […]

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