Question

What is marginal costing merits and demerits of marginal costing

Answer 1

additional costing for producing the additional unit is called marginal costing.

Answer 2

$\large { \fcolorbox{gray}{black}{ ✔\: \textbf{Verified \: answer}}}$

• Marginal costing system is very useful for internal purposes – decision making, planning and control.

• Calculation of cost of sales, under marginal costing system, is very simple to understand.

• Marginal costing system is very simple to operate as it does not require complex apportionments of overheads.