Marginal Costing is a key tool used by Managements for Cost-Volume- Profit analysis enabling comparative assessment of 2 or more products / divisions. However, Absorption costing is the preferred method of accountants as it is a recognized and accepted practice for external reporting. Please describe the differences between Marginal Costing and Absorption costing
Marginal Costing is a key tool used by Managements for Cost-Volume- Profit analysis enabling comparative assessment of 2 or more products / divisions. However, Absorption costing is the preferred method of accountants as it is a recognized and accepted practice for external reporting. Please describe the differences between Marginal Costing and Absorption costing
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter8: Tactical Decision-making And Relevant Analysis
Section: Chapter Questions
Problem 14MCQ
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Marginal Costing is a key tool used by Managements for Cost-Volume- Profit
analysis enabling comparative assessment of 2 or more products / divisions.
However, Absorption costing is the preferred method of accountants as it is a
recognized and accepted practice for external reporting.
Please describe the differences between Marginal Costing and Absorption costing
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