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Marginal Costing (In Hindi)
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Understanding marginal costing and it's relationship with various costs. Difference between profit and contribution.

Ashima Negi is teaching live on Unacademy Plus

Ashima Negi
CBSE UGC NET. Full time Assistant Professor; MBA-FINANCE;BBA;NCFM;PGDM;TQM;ISO & QS9000;Assurance;CCIBL, Youtuber studytalkwithashima

U
Unacademy user
There are some people who dislike jatin's sir explanation. They should understand that there is limitation and in that period jatin sir explain the things very clearly and in an awesome way. Its not easy to explain each and every details. So guys we should thanks these educator as they are doing there best for us. I don't have any issue with deepanshu sir. Thanks to him also. Jatin sir explains the news very interestingly instead of only reading. And he always correlate the news. He always give some practice que too. Its for the people like me who are not able to get the newspaper as I am in village currently . Thanks alot sir. Keep it up. Your way of explaining always revive my mind. thank you so much. Don't ever mind the guys who are criticizing. Even I would say to continue your analysis always.
Dhanu .
2 years ago
You are right and we should thank them for their hard work instead of criticizing,
Quite right. Thanks
AS
you are right
Anitaa Singh
2 years ago
I agree with you
Akash Sangle
2 years ago
Agree
thanks..
  1. 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


  2. unacademy All ive & Lessons by all Weekly quizzes structured courses top Educators & doubt-clearing ASHIMA NEGI Referral Code - negi1983-8777


  3. 18:51 Marginal cost Marginal costing is a principle whereby variable costs are charged to cost units and the fixed costs attributable to the relevant period is written off in full against the contribution for that period. Marginal costing is the ascertainment of marginal cost and the effect on rofit of changes in volume or type of output by differentiating between ixed costs and variable cost. In marginal costing, costs are classified into fixed and variable costs. The concept of marginal costing is based on the behaviour of costs that vary with the volume of output. Marginal costing is known as 'variable costing', in which only variable costs are accumulated and cost per unit is ascertained only on the basis of variable costs. Sometimes, marginal costing and direct costing are treated as interchangeable terms. The major difference between these two is that, marginal cost covers only those expenses which are of variable nature whereas direct cost may also include cost which besides being fixed in nature identified with cost objective.


  4. 18:51 Contribution of Marginal Costing: In marginal costing, costs are classified into fixed and variable costs. The concept marginal costing is based on the behaviour of costs with volume of output. From this approach, it is not possible to identify an amount of net profit per product, but it is possible to identify the amount of contribution per product towards fixed overheads and profits. The contribution is the difference between sales volume and the marginal cost of sales. In marginal costing it is not possible to determine the profit per unit of product because fixed overheads are charged in total to the profit and loss account rather than recovered in product costing. Contribution is a pool of amount from which total fixed costs will be deducted to arrive at the profit or loss.


  5. 18:51 The distinction between contribution and profit is given below: Contribution: 1. It includes fixed cost and profit. 2. Marginal costing technique uses the concept of contribution. 3. At break-even point, contribution equals to fixed cost. . Contribution concept is used in managerial decision making. Profit: 1. It does not include fixed cost. 2. Profit is the accounting concept to determine profit or loss of a business concern. Only the sales in excess of break-even point results in profit. 4. Profit is computed to determine the profitability of product and the concern.