Question

0. The main difference between marginal cost and absorption costing is regarding:​

Answer 1

Answer:

Marginal costing applies only those costs to inventory that were incurred when each individual unit was produced, while absorption costing applies all production costs to all units produced.

Answer 2

The main difference between marginal cost and absorption costing is that Marginal Costing does not account for fixed costs when calculating product costs or valuing inventory.

• Absorption costing, on the other hand, accounts for both fixed and variable expenses.
• Under product costing or inventory evaluation, marginal costing does not capture or account for fixed expenses.
• Absorption costing, on the other hand, accounts for both fixed and variable expenses.