Word Count : 1121

---

Marginal costing is a technique of cost accounting and managerial decision-making in which only variable costs are considered as the cost of production, while fixed costs are treated as period costs and are written off in full against the contribution of the period. The central idea of marginal costing is that costs behave differently with changes in the level of output, and therefore they should be classified into variable and fixed components for better analysis and control. Variable costs vary directly with the level of activity, whereas fixed costs remain constant within a relevant range regardless of output. Marginal costing focuses on the marginal cost, which is the additional cost incurred in producing one more unit of output, and this marginal cost is generally equivalent to variable cost per unit. The primary objective of marginal costing is to assist management in planning, controlling, and decision-making. It is particularly useful in short-term decisions such as pricing, product mix, make-or-buy decisions, acceptance of special orders, and determination of the break-even point. Unlike absorption costing, marginal costing does not allocate fixed manufacturing overheads to units of production; instead, these costs are charged in total to the profit and loss account of the period in which they are incurred. This approach provides clearer insight into how changes in sales volume affect profit. A key concept in marginal costing is contribution. Contribution represents the amount that each unit of sale contributes towards covering fixed costs and thereafter generating profit. It is calculated as the difference between sales revenue and variable costs. Contribution can be expressed in absolute terms, per unit terms, or as a ratio. In its simplest form, contribution equals sales minus variable costs. ______ ______ ___ _______ ____ _________ _____ ___ ______ _________.
___ _______ __________ ___ ________ ___ _________ _____ ______.
_______ _____ __________ __________ __________ __________ __________ _________ ____ ___ __________.
______ _______ _________ _________ ____ ___ ____ _________ _________ ____ _________.
_________ ____ ______ _______ _______ ______ ____ __________ ___ ________ ________ ____.
______ ______ ___ _________ ___ _________ _______ ________ _________ _________.
_______ _______ _______ _______ ______.
_____ ______ ________ ___ _____ _______ ____ ________.
__________ ____ ______ ________ ________ _____ __________ __________ _________.
_________ ___ ________ _____ ____ ________ ____ __________ _________ _____.
__________ ____ ________ ____ ____ _____ __________ ___ ___ ___ ___ _____.
______ ________ _______ __________ ___.
__________ _____ _______ _________ ____ _____ _____.
_______ ________ _____ _______ _______ ____ _____ ________ ____ __________.
_____ ___ ________ ____ _____.
_____ _______ _______ ________ ___ __________ ____ ____ ________.
_________ ______ ____ ______ _______ __________ _______ _________ ____ _____.
_______ ____ _______ ________ _____ _____ _______ ________.
________ ________ ______ _________ __________ _________ ____ __________ ____ _____ ____.
_________ ____ ___ ________ ____ ____ _______ _______.
_________ _________ _______ ___ ___ ______ __________ _______ ___ ____ ___.
______ ______ ______ __________ _________ ________ _____ _____ ________.
______ ______ __________ _____ ___ __________ ______ ______ ________ ________.
_____ ______ _________ _______ ______ ___ ______ ____ ________ ____ __________ _____.
___ _________ ___ ________ _______ _____ ____ __________ ________ ________ __________.
_______ _______ _____ __________ _________ ____ __________ ______.
_______ _______ _________ ___ _________ _____ _____ ________ _____ __________.
_______ _______ _________ ____ _________.
___ ___ ______ ____ _________ ____ ____.
________ _______ ______ __________ ________ ________ ________ ___ ____ ___ ______ ____.
_______ ________ ___ _______ ________ _________ ________ _____ _________ _____.
_____ ________ ________ ____ _______ _________ _____ _________ _________ __________ _____.
_______ _____ ______ ___ ______ ______ ___ ________ __________ ___.
_________ ___ _______ ________ _____ _________ _____ ___.
__________ _________ ______ _________ _______ __________ ________ ______.
________ ________ ______ _______ _________ _________ ________ ___.
_____ __________ ________ _______ _____ ___ ____ ______.
__________ ______ ______ _____ ____ ______ _________ _______ _________ ___ _____.
______ __________ ____ _________ _______ ______ _____ ______ ___ _______ _________ ________.
____ _______ _________ ______ ___ ___ _______ ____.
_______ ____ _________ _____ ___ _____ ____.
__________ ___ ______ ___ _______ _______ _____.
_____ ________ ________ _________ ______.
___ _____ _____ ____ ______ ____ _______ _____ __________ ____.
__________ ____ __________ _______ _________ _________ _____ ____ ________ _______.
_________ _________ __________ _____ ____ __________ __________ ________ _________ ______ __________ _________.
__________ _______ __________ ______ _________ ______ ________ ___ ____ ________ ________.
_____ ______ _____ ___ _______ __________ _____ ________ __________ _____ _________ ______.
___ _______ __________ __________ _________ ___ _____ ______ ___.
_____ ______ ___ _______ ______ __________ ___ ___ ___ _________.
________ ___ _________ ___ _______ ___.
______ ______ ______ ______ _________ _____ ____ _______ _______.
_______ ____ ______ _______ _______ __________ ___ ____ ____ _______ ______ _________.
_________ ______ _______ _________ _____ __________ ______ _____.
______ __________ _________ _________ ______ ________ ________ _________ ____.
________ _______ _________ ________ _______ ___ ____ _________ ___.
__________ _____ _____ ____ ___ ___ _________ ______ ___ _____ ___.
_________ _____ __________ ______ _______ _________.
_______ _____ _______ ________ ____ ____ _____ ________ __________ _____ _______.
_____ _________ __________ _______ ______ ____ _______ _____ _____ _________ _____.
_____ ________ _____ __________ __________ _______ ___.
_______ ______ _____ ___ ______ ________ ____.
____ _____ ________ ______ ____ ___ ____ _____ _______ ____ ___ ______.
_________ ______ _________ __________ _______ __________.
_______ ________ ___ ______ _______ ________ ___ ______ _____.
____ _____ ______ ____ ____ __________ _______ _____.
_______ _____ ___ __________ _________ ________ ___ __________ ________.
_________ __________ _______ ______ _______ ______ _____.
______ __________ __________ __________ ____.
_______ ________ ____ _______ ________.
_________ ________ ______ _____ _________ ____ _____ __________ ______ ______ ________ _____.
_____ __________ ____ ___ ___ _______.
________ ________ ____ __________ ______ ______ ____ ______ _________.
_______ __________ _____ ____ __________ _____ ____ _______ _____.
_______ ____ ___ ________ ________ _________ __________ ________ _______ _______ _________ ___.
_____ _____ ___ _____ _________ _____ ___ ______.
____ _____ ________ ________ __________.
_________ ___ ____ _____ ___ _______ __________ _____.
___ __________ ________ ____ ______ _______ _____ ________ ______.
__________ ________ _____ __________ _______.
_____ ____ ____ ________ _______ ______ __________.
____ ____ ___ _________ _________ ______ ________.
_____ ____ ______ ____ ________ __________ ______.
__________ ___ _____ _____ _____ __________ __________.
________ ___ ______ ____ _______ ___ ______ ____ ___ ____ ______ __________.
________ ________ _________ __________ _______ _____.
______ _______ ______ __________ ________ _____ ______.
_________ _________ __________ ____ ______ ________ _____ _______ _____ ____ _______.
______ ___ _______ _____ __________ _____ _______ ________ _____ _________ __________.
______ _____ __________ ______ __________ ____ ________ __________ ____ _____.
____ __________ ________ ____ ______ ______ _____ ___ _______ ________ ________ _________.
_____ ____ ____ ____ _________ _____ ______ _____ ____ ______.
_________ ______ ______ _______ ____ _____ _______ ________ __________ ____ __________.
____ ________ ___ ________ _______ _______ ________.
_____ _____ _______ _________.
Get Full Answer on WhatsApp