Question

How technique of marginal costing can be used to maximize the profit and explain the pitfalls which you expect to come across in using this technique?​

Answer 1

Answer:

(1) Marginal costing system is very useful for internal purposes – decision making, planning and control. (2) Calculation of cost of sales, under marginal costing system, is very simple to understand. (3) Marginal costing system is very simple to operate as it does not require complex apportionments of overheads.