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Cost Accounting and Management Account
what is the difference between cost accounting and management account
ngodza22
- Jun 29th, 2008
Since fixed cost doesn't change whether you decide to produce or not to produce...eg rent, thus in marginal costing fixed cost element is removed so as to arrive at contribution... hence fixed cost is irrelevent cost in marginal costing
ngodza22
- Jun 29th, 2008
Cost accounting :is mainly concerned with data captive, recording, accumulation & interpretation of information cost of prodution so as enable management to focust & relevent decision.Manageme...
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What is marginal cost?
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Editorial / Best Answer
Answered by: T.Prasad
- Aug 10th, 2006
Marginal Cost is the cost with is incurred to produce one more extra unit.
Example to produce 100 units cost is Rs. 500/-
to produce the 101th unit the cost became Rs. 520/- (The cost to produce one more unit i.e, unit is Rs. 20/-) The Rs. 20/- is called Marginal Cost.
ngodza22
- Jun 29th, 2008
It is a costing rule technique that excludes fixed cost from influencing decisions because they are said to be irrelevent cost.... simply because they are bound to be incurred even if a firm produce or doesn't produce eg rent,
andy
- Dec 26th, 2006
Marginal Cost is variable cost AS LONG AS your fixed assets can handle the output. If that additional unit forces you to acquire more assets to handle it, your marginal cost can be way out of line with your average variable cost.
