After studying this chapter you should be able to:
Understand the marginal-costing technique.
Understand the economic as well as the accountant concept of marginal costing.
Know well the concept of absorption costing.
Differentiate between marginal costing and absorption costing.
Understand the limitations of absorption costing.
Classify costs into variable and fixed and semi-variable overheads into variable and fixed.
Apply different methods for segregation of semi-variable overheads.
Know well the concept of “contribution”.
Understand the difference between “contribution” and “profit”.
Understand the special features of marginal costing.
Know the advantages and limitations of marginal-costing technique. ...