Hello,
Which of the following is a cost behavior oriented approach to production costing?
(a) Absorption costing
(b) Marginal costing
(c) Process costing
(d) Job order costing
which option is right and why? ? Please explain also......Regards and Thanks.
Menu
What is cost behavior oriented approach.
Replies (2)
a. absorption costing
cost behaviour refers to the analysis of total costs as variable and fixed costs. Variable cost remain constant per unit while fixed costs remain constant in total. In absorption costing, variable and fixed manufacturing costs are added to the cost of inventory. The fixed manufacturing costs may be estimated (budgeted as fixed overhead per unit). Marginal costing refers only to the incremental costs, process and job costing apply to different industries.
Could you please explain Job order costing and Marginal Costing too?
Recent Topics :
- Capital Gains Tax
- LTCG 112A and business loss
- FAST-DS 2026 applicability: foreign employee share
- NRI Property Sale in India: TDS Rates and Key Comp
- Clarification on September 2026 PF Calculation for
- DRC-03 interest paid under CGST/SGST instead of IG
- GSTR1 amendment Bulk bills
- Capital Gain on Sale of Gold
- GST SALES RETURN MISSING 2025-26 FY
- Enquiry on FAST-DS system generated email
Related Topics :
CAclubindia
