AID18752: 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 (Any 5).

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AID18752: 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 (Any 5).
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