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 the methods and techniques of costing. The methods or types of costing refer to the techniques and processes employed in the ascertainment of costs. There are different methods of costing for different industries. The method of costing to be used in a particular concern depends upon the type of manufacturing and nature of industry. [...]
In this article we will discuss about the procedure for recording of costs, value and profit on contracts. Recording of Costs of a Contract: The following is the recording procedure for different costs relating to a contract: 1. Materials: Contract Account is debited with the following, relating to materials: (a) Materials specially purchased and sent to contract site. (b) Materials [...]