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Marginal costing is a technique of costing where the variable expenses are charged to a product. It ignores the fixed expenses incurred by the business in fixing the price of a product on the assumption that the fixed expenses are not incurred in producing an additional unit.They are treated as period costs& charged directly to P& L A/C.Marginal cost is the cost of producing an additional unit of product.It takes the direct expenses & the variable portion of the overhead expenditure. But Direct costing takes into account only the direct expenses like direct mterials, direct labour & direct expenditure for finding out the cost of a product.

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Is the marginal costing called direct costing?

Yes marginal costing is also sometimes called direct costing.


Is direct costing the same as variable costing?

Variable costing is called marginal costing while direct costing is separate concept.


Limitation and assumption of marginal costing?

assumption of marginal costing


When to use marginal costing?

Marginal costing is the method of costing for evaluating the changes in total cost due to change in number of units produced.


What is marginal costing techniques?

There are two type of costing are involved in a product or service. ie Direct cost and Indirect cost. In this two head there are two sub type costing are involved. ie Varriable cost and Fixed cost. Here the the total varriable cost are involved in a product of cost is called marginal costing. In another way the totoal cost -fixed cost is called marginal costing By M.Magesh 099948 33079


Difference between absorption and marginal costing?

marginal costing is recommended by IAS and absorption costing is not recommended by IAS,marginal costing is used for internal purposes and absorption costing is ysed for external purposes,in marginal costing the fixed production overheads are not calculated as a product cost and in absorption costing the fixed prodution overheads are calculated as product cost.


What are the uses of marginal costing and absorption costing?

to calculate the profit easilly


What is techniques costing?

There are two type of costing are involved in a product or service. ie Direct cost and Indirect cost. In this two head there are two sub type costing are involved. ie Varriable cost and Fixed cost. Here the the total varriable cost are involved in a product of cost is called marginal costing. In another way the totoal cost -fixed cost is called marginal costing By M.Magesh 099948 33079


Marginal costing and absorption costing which is favourable?

= http://wiki.answers.com/Q/Marginal_costing_and_absorption_costing_which_is_favourable" =


Limitations of marginal costing?

in marginal costing key factor and limitation factor is also available which may put limits on produduction unit and sales unit.


Direct costing as a technique of costing?

direct costing is a technique in which costs are classified as direct cost or indirect cost.


Marginal costing is useful in?

Marginal costing is one of the technique of costing and is usefull for the decision making process. As in decision making process decision are always made for the future activities and not for past activities so if exept marginal costing any other costing method for example absorption costing method is used then there is a chance of making wrong decisions as in future decision making past decision and past data is not relevent for decision making.