Differential costing and Marginal costing
| Costing Type | Definition | Example |
|---|---|---|
| Differential costing | A costing method that compares the costs and benefits of two or more alternative courses of action. | Deciding whether to replace an old machine with a new one. |
| Marginal costing | A costing method that calculates the cost of producing one additional unit or the cost savings from producing one less unit. | Determining the minimum __________ _______ ___ _________ _________ _______ _______ ______ ____ ___ _______ ________. ________ ______ _________ _______ _______ _________ _____ ___ ______ __________. ________ ___ _______ ______ ___ ________ ____. _________ _______ __________ ______ __________ ______ ____ _______ ______. _______ ____ ___ _________ ______ ________ _________ ____ ____ _________ __________ _________. ________ _____ _____ _________ ________ ______ ____ _________ __________. __________ ____ __________ ________ _________ ____ __________ ________ _________ ______ _____. ______ _________ ________ ______ ________ ________ ___ ______ _______. ____ _________ ____ _________ ______ ____ ________ __________ __________ _________. ________ _________ _______ __________ _______ _____ _______ _________ _____. ______ ________ _________ ______ ________ _______ _____. _______ ______ _________ ___ _________ ________ __________ ______ ____ ________. ________ ______ _____ _________ ______ ____ _______ ___ ______ __________. ____ ______ ______ ________ ________ _______ ________ ____ ________ ________ ____. __________ ________ ________ ___ __________ _______ _________ ______. __________ ___ ______ __________ _______ _____ _____ _____ ____ _______ ________ _______. ___ _____ ________ ___ ___ ________ ______ _______ ______ _____ _________. _______ ___ ___ __________ ______ _________. _________ _____ ____ _____ __________ _________ _______. ____ _____ __________ ____ ________ ______ ____ ________ ______. _____ __________ ________ ________ _________ ____ _________ ____ __________. ______ ______ ________ _____ _______ ___ _________ _______ _________. Get Full Answer on WhatsApp Related Questions Cash Budget and Master budget The Standard Cost of Chemical mixture ‘PQ’ is as follows: 40% of material P @ Rs.400 per kg. 60% of material Q @ Rs.600 per kg. A standard loss of 10% is normally anticipated in production. The following particulars are available for the month of March, 2004. 180 kgs of material P have been used @ Rs.680 per kg 220 kgs of material Q have been used @ Rs.360 per kg. The actual of production of ‘PQ’ was 369 kgs. Calculate the following variances: a) Material Price Variance b) Material Usage Variance c) Material Mix Variance d) Material Yield Variance State the conditions under which the income statement prepared with absorption costing and marginal costing will give different results. Explain how the variance analysis relating to overheads differ from that relating to material and labour. In what ways can we analyse sales variances. Explain in detail.
The following additional information is also available: i) The authorized capital of the company is 80,000 equity shares of Rs. 10 each of which 50% has been issued and has been recommended by the directors ii) A dividend of 15% on the paid-up capital has been recommended by the directors. iii) The closing stock of finished goods at cost is Rs. 5,60,000. iv) The development rebate reserve is no longer required. v) Depreciation on plant and machinery amounting to Rs. 43,000 on furniture amounting to Rs. 1,300 and on building amounting to Rs. 3,800 has been debited to miscellaneous expenses. vi) Surplus in profit and loss account after proposed dividends, is to be transferred to general reserve. vii) Income-tax assessment for a prior year has been completed, fixing the income tax liability at Rs. 1,55,000 (against which a provision of Rs. 80,000 and advances of income tax of Rs. 70,000 exists in the books). You are required to prepare: i. Profit and loss account for the year ended 31st December, 2004; and ii. Balance sheet in the prescribed form as on that date Variable and Fixed costs IGNOU NEWS Assignment Submission Last Date Extended Till 30 June 2026 Click Here★★★IGNOU June 2026 TEE Date Sheet Released Click Here★★★ Top |
