Explain briefly the technique of marginal costing. In what ways do you consider this technique useful in management accounting?

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sush_834

  • Oct 18th, 2009
 

Marginal costing is also known as "Direct costing" or Variable costing. In U.K it is called "Marginal Costing". It is an economic concept. Marginal cost is derived from the word "Margin".  It is the additional cost of producing additional units.
Marginal cost is as the amount of any given volume of output by which aggregate costs are changed, volume of output is increased or decreased by one unit.

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