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ABOUT MARGINAL COSTING AND ABSORPTION COSTING

This topic has 1 reply, 2 voices, and was last updated 2 years ago by John Moffat.

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March 17, 2022 at 8:19 am #651404
hermela
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how marginal costing affect decision making?
and what is the decision about? MEANS at what desion we use marginal costing/
March 17, 2022 at 3:17 pm #651426
John Moffat
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Marginal costing is more useful when (for example) considering different possible levels of production, because the fixed cost will not change, just the total contribution will change (and finding breakeven using CVP analysis).
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