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MAMarginal costing income statement

Jjessica4y ago
Why in the income statement of marginal costing we have to deduct the variable costs from the revenue ? Thanks in advance.
John MoffatJohn MoffatTutor4y ago#1
In future you must ask in the Ask the Tutor Forum is you want me to answer. This forum is for students to help each other :-) We always subtract costs from the revenue to arrive at the profit. With marginal costing we subtract the variable costs and arrive at the contribution, and then subtract the fixed costs so as to arrive at the profit. All of this (and the reasons for the two approaches) are explained in detail in my free lectures on marginal and absorption costing. The lectures are a complete free course for Paper MA and cover everything needed to be able to pass the exam well.
Jjessica4y ago#2
Sir, can you kindly explain the reason for the approaches here ? Thank you.
Jjessica4y ago#3
Sorry for asking the question here. I pressed the wrong button.
Jjessica4y ago#4
Can you kindly explain it here if you dont mind? Thank you.
John MoffatJohn MoffatTutor4y ago#5
No - you cannot expect me to type out my free lectures again here :-)
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