Absorption Costing vs Marginal Costing
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Added on 2023-01-07
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This article discusses the differences between absorption costing and marginal costing in management accounting. It explains how absorption costing considers both direct and indirect costs, while marginal costing only considers variable costs. The article also provides examples of profit/income statements and reconciliation statements for both methods. Based on the analysis, it suggests that absorption costing is a better technique for deriving profit or loss in the organization.
Absorption Costing vs Marginal Costing
Added on 2023-01-07
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