Costing
This query is : Resolved
29 August 2011
What is the difference between absorption costing and marginal costing ?
Under what circumstances company uses absorption/ Marginal costing??
Thanking you.
Under what circumstances company uses absorption/ Marginal costing??
Thanking you.
29 August 2011
when we allocate all manufacturing costs to products regardless of whether they are fixed or variable. This approach is known as absorption costing/full costing
However, only variable costs are relevant to decision-making. This is known as marginal costing/variable costing
There is no specific circumstances define for using those costing, you can use all the circumstances both costing provided the information are available
when we allocate all manufacturing costs to products regardless of whether they are fixed or variable. This approach is known as absorption costing/full costing
However, only variable costs are relevant to decision-making. This is known as marginal costing/variable costing
There is no specific circumstances define for using those costing, you can use all the circumstances both costing provided the information are available
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