pdf regarding Marginal costing and application of marginal costing

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Meaning and definition of Marginal costing

Marginal costing is formally defined as: 'the accounting system in which variable costs are charged to cost units and the fixed costs of the period are written-off in full against the aggregate contribution. Its special value is in decision making'. (Terminology.)

1) Cost control

2) Elimination of cost variance per unit

3) Short-term profit planning

4) Accurate overhead recovery rate

5) Maximum return to the business:
 
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