Marginal Costing System

Marginal costing system is defined as division of cost on the basis of cost behavior that divides into two costs that is fixed & variable cost. Marginal costing system is a simple method as it focuses on one aspect of organization matter. Marginal costing system includes fixed cost as time based and it is the reason it is linked with output of units.

Advantages of Variable or Direct or Marginal Costing System

Sidra Farid Marginal Costing System

Advantages of Variable or Direct or Marginal Costing System Learning Objectives: What are the advantages of variable costing system? Why absorption costing continues to be used almost exclusively for external reporting purposes? Variable costing has the following main advantages: The data that are required