05 September 2010
marginal costing is prepared when i.e. whether it will prepare as estimation before manufacturing or after manufacturing. if before then if raw material price changes then what they will do whether they will incrase price or they will charge at the4 same price.
05 September 2010
Marginal casting can be estimated either before or after no relataion
But if you want proper budgeting for manufacturing, marginal costing need to estimate before manufacturing only
Always while estimating cost threre will be varriance will be there in the first time you may get difficult, once you understand the process futher estimation can be perfect
Material price will be decided after confirm the price with suppliers