In Marginal Costing variances in the opening and closing stock will not influence the per unit cost. Unlike Absorption Costing, where the variances between the stock at the beginning and the end will show its effect by increasing / decreasing per unit cosThe theory of marginal costing as set out in “A report on Marginal Costing” published by CIMA, London is as follows:In relation to a given volume of output, additional output can normally be obtained at less than proportionate cost because within limits, the aggregate of certain items of cost will tend to remain fixed and only the aggregate of the remainder will tend to rise proportionately with an increase in output. Conversely, a decrease in the volume of output will normally be accompanied by less than proportionate fall in the aggregate cost.
đang được dịch, vui lòng đợi..
![](//viimg.ilovetranslation.com/pic/loading_3.gif?v=b9814dd30c1d7c59_8619)