Direct Costing

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August 31, 2024 4 min read Definitions

Marginal Costing: An Effective Decision-Making Technique

Accounting Economics Marginal Costing Direct Costing Variable Costing Cost Units Fixed Costs

Marginal costing, also known as direct costing or variable costing, is a technique that charges only the marginal costs to cost units, treating fixed costs as a lump sum deduction. This method aids in internal reporting and decision-making processes.

August 25, 2024 3 min read Definitions

Contribution Profit Margin: Key Concept in Cost Accounting

Cost-Accounting Finance Contribution Profit Margin Variable Costs Fixed Costs Gross Profit Direct Costing

Contribution Profit Margin is the excess of sales price over variable costs. This amount offsets fixed costs and contributes to gross profit. Learn more about its calculation, significance, and related concepts in cost accounting.