Ashima Negi is teaching live on Unacademy Plus
18:51 NTA UGC NET 2019 By:- Assistant Professor(Ms.)Ashima Negi Candidate For Doctorate ( Ph.D.) UGC NET-Management. CA(I), MBA Finance, BBA, PGDM-Materials Management, NCFM, TQM & ISO 9000, Qs 9000 & Assurance, CCIBL
unacademy All ive & Lessons by all Weekly quizzes structured courses top Educators & doubt-clearing ASHIMA NEGI Referral Code - negi1983-8777
18:51 t LTE Formulas used in Marginal Costing . Sales - Variable cost + Fixed cost + Profit Sales-Variable cost Contribution Sales - Variable cost Fixed cost + Profit Contribution Fixed cost + Profit Contribution - Fixed cost Profit
18:51 Features of Marginal Costing . The main features of marginal costing are as follows: (a) All costs are categorized into fixed and variable costs. Variable cost per unit is same at any evel of activity. Fixed costs remain constant in total regardless of changes in volume . (b) Fixed costs are considered period costs and are not included in product cost, only variable costs are considered as product costs. . (c) Stock of work-in-progress and finished goods are valued at marginal cost of production. . (d) In marginal process costing, products are transferred from one process to another are valued at marginal costs only . (e) Prices are determined with reference to marginal cost and contribution margin (f) Profitability of departments, products etc. is determined with reference to their contribution margin. (g) In accounting, marginal cost, the overhead control account in the cost ledger represents only the variable overhead. Fixed costs are taken as expenses in the profit and loss account and thus excluded from costs. . (h) Presentation of data is oriented to highlight the total contribution and contribution from each product. (i) The difference in the magnitude of opening stock and closing stock does not affect the unit cost of production since all the product costs are variable costs.