Question

Difference between marginal cost and standard costing

Answer 1

Standard costing:
costing is that in wch ne target is set and we have to achieve that target .And in marginal costing we did'nt need to set any target in this we read out about the behaviour of cost and this teqnique is used to analyse performance and for profit planning ,fixing prices and most important cost contol .
marginal cost:

This costing system categorizes cost according to their cost behavior and divides them into variable and fixed cost, this system uses a cost for each unit of output based purely on the variable cost. All fixed cost is regarded as times based and are therefore linked to accounting periods

Answer 2

Answer:

The main difference between marginal costing and standard costing is, marginal cost is subset of standard cost, whereas the standard is the super set of marginal costing.

Explanation:

Standard costing is the method of costing, which includes two types of costing methodologies. One is the marginal cost, and the other is absorption cost. Marginal costing are based basically for the purpose of contribution, and the absorption cost refers with the purpose related to the profit earned, for each unit of the product.