mcom ca ppt sem 2
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Presented by
AnandSingh Roll No.03
Presented to
Dr.RamachandranNadarVANCED COST ACCONT!N"
CO#. PART $ ! % SE#ESTER !!
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#EAN!N"
Marginal costing means the ascertainment ofmarginal costs and of
the eect on prot of changes in volume of output bydierentiating between xed and variable costs.
Not a method of costingTechniue of controlling
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&eat'res
!lements of cost are dierentiated
"nly the variable or marginal cost is consideredwhile calculating
product cost.
#toc$ of nished products and wor$%in%progress arevalued at variable cost.
&rices are based on marginal cost plus contribution.
't is a techniue of cost recording and cost reporting.
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ADVANTA"ES
(onstant in nature
#implied overhead treatment
)acilitates control
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(!#!TA!ONS
*reater emphasis on sales
+ess eective in capital intensiveindustry
,seful only for short%term assessment
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CONCEPT O&
PRO&!T&rot is $nown as -Net Margin. Net Margin is
calculated after deducting xed cost from totalcontribution. &rot is an excess of contribution overxed cost.
&rot / (ontribution 0
)ixed (ost
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CONTR!)T!ON
( / # 0 1"2
( / ) 3 & or 4%+5
(ontribution is the excess of selling priceover variable costs. 't is $nown as contributionbecause it contributes towards recovery of the xedcosts and prots.
(ontribution is not prot. 't covers xed costand the balance left out is prot.
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T*AN+ ,O-
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