what do you understand by marginal costing? state its usefulness as a tool for corporate decisions.
Answers
Answer:
The important advantages of Marginal Costing are:
(b) Eliminating of fixed overheads from the cost of production prevents the effect of varying charges per unit, and also prevents the carrying forward of a portion of the fixed overheads of the current period to the subsequent period.
Answer:
Marginal cost refers to the increase or decrease in the cost of producing one more unit or serving one more customer. ... It is often calculated when enough items have been produced to cover the fixed costs and production is at a break-even point, where the only expenses going forward are variable or direct costs.
Marginal Costing is a very useful decision-making technique. It helps management to set prices, compare alternative production methods, set production activity level, close production lines, and choose which of a range of potential products to manufacture.
Explanation:
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