Tag Archives | Marginal Costing

Marginal Costing in Cost Accounting: Definition, Salient Features, Advantages and Limitations

In this article we will discuss about:- 1. Introduction to Marginal Costing 2. Definition of Marginal Costing 3. Salient Features 4. Advantages 5. Limitations. Definition or Introduction to Marginal Costing: Marginal costing is a technique of costing fully oriented towards managerial decision making and control. Marginal costing is not a method of cost ascertainment like job or process or operating [...]

By |2018-06-18T11:02:00+00:00June 18, 2018|Marginal Costing|Comments Off on Marginal Costing in Cost Accounting: Definition, Salient Features, Advantages and Limitations

Break Even Charts: Assumptions, How to Draw, Types, Advantages and Limitations

In this article we will discuss about:- 1. Meaning of Break Even Charts 2. Significance of Break-Even Chart at Various Levels of Activity 3. Assumptions 4. Construction 5. Types 6. Advantages 7. Limitations. Meaning of Break Even Charts: 'Break even Chart' is a graphical representation of marginal costing. It is considered to be the most useful graphic representation of accounting [...]

By |2018-06-18T11:02:00+00:00June 18, 2018|Financial Management|Comments Off on Break Even Charts: Assumptions, How to Draw, Types, Advantages and Limitations

Marginal Costing : Product Mix and Outsourcing Decision | Cost Accounting

Marginal costing technique is used for short-term decision-making. It assumes that fixed costs are not affected by the decision to allocate resources to different activities. Therefore, variable costs are the only relevant costs for decision-making. However, in practice, this assumption is seldom valid. Therefore, marginal costing technique has limited use in practice. To arrive at the final decision, managers consider [...]

By |2018-05-16T07:31:19+00:00May 16, 2018|Marginal Costing|Comments Off on Marginal Costing : Product Mix and Outsourcing Decision | Cost Accounting
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