Marginal Costing and Cost–Volume–Profit Analysis
On completion of the study of the chapter, you should be able to understand:
- What is Marginal Cost?
- What is Marginal Costing?
- Features, advantages and limitations of Marginal Costing.
- Concept of Cost–Volume–Profit (CVP) analysis.
- Features and objectives of CVP Analysis.
- Classification of cost under Marginal Costing Technique.
- Elements of CVP Analysis.
- Marginal Cost equation.
- Concept of contribution, Break-Even (BE) point and margin of safety.
- Concept of Profit–volume ratio.
- Concept of BE Analysis.
- Concept of BE Chart and Angle of Incidence.
- Development of different formulae under CVP Analysis.
10.1 CONCEPT OF MARGINAL COST
According to the Chartered Institute of Management ...