Question

marginal costing technique helps the management in deciding

Answer 1

Answer:

ADVERTISEMENTS: Marginal costing helps management to decide whether the firm should itself manufacture a component part or buy it from an outside firm. This is particularly so when a component part is available in the market at price below the firm's own cost.

Marginal costing is the most powerful and popular technique in aid of managerial decision making. As already seen, it reveals the cost, volume profit relationship in all its ramifications which is useful in profit planning, selling price determination, selection of optimum volume of production, etc.

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