Query related to as 2
Raj Jataniya (Articled Trainee) (31 Points)
25 August 2014Raj Jataniya (Articled Trainee) (31 Points)
25 August 2014
Ashish Tewani
(CA Final Article at V.P. Mehta & Co.)
(83 Points)
Replied 27 August 2014
As you just said, it shows CORRECT PROFIT and not CORRECT COST! :)
Marginal Costing ignores the Fixed Cost Component, which FORMS part of the cost of inventory, hence, not allowed.