In Marginal costing, total cost is divided into variable cost & fixed cost. Variable cost
amount will change in relation to changes in levels of output quantity.
In Marginal costing, variable cost is given utmost importance.
In Marginal costing, the effect on profit, on A/c of changes in output quantity, is ascertained.
“Marginal cost” is also known as “Variable Cost”.
What is Marginal Costing?
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