Explain the application of marginal costing in decision making
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The application of marginal costing in decision making
Explanation:
- Marginal costing in decision making is related to short term decision making. Decision-related to the make or buy, accepting a special order or discounted product, shutting down or continuing, etc.
- The shot terms costs remain fixed and these decisions are made on the basis of contributions thus the marginal costing can be used extensively.
- Under the make or buy decisions the organization purchases different product dorm outside suppliers.
- The company may need its own need or may acquire form outside. The cost factor consists of the material, labor, and costs of acquisitions available.
- Reasons for making in the house include the variable cost of manufacturing, designing products, and technology. Shortage of skilled manpower etc.
Learn more about the application of marginal costing in decision making.
- brainly.in/question/9260268 answered by darshilgalaiya.
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