Professional Documents
Culture Documents
COSTING
Subject :
Submitted to Prof :
MMS SEMESTER-2;DIV-B
GROUP MEMBERS
Name Roll No
Abhinav Jain 67
Priyank jaywant 68
Seema Kalro 69
Nikita Khandol 70
Sagar Malage 71
Tanaya Mengle 72
MARGINAL COST
The ICMA has defined Marginal cost as the
amount at any given volume of output by
which aggregate costs are changed if the
volume of output is increased or decreased
by one unit .
V=Variable cost
F=Fixed cost
P=Profit
APPLICATION OF MARGINAL COSTING
Diversification of products
Pricing decisions
Acceptance of additional
Facilitates control
Meaningful reporting
Relative profitability
LIMITATIONS
Greater emphasis on sales
Improper basis for fixation of selling price
Incomplete information
Direct labor
Direct expenses
Variable overheads
Contributory costing
Incremental costing
No under/over absorption