- No apportionment of overhead costs (which are frequently based on arbitrary basis) to
products and departments are necessary.
- Where sales are constant and production fluctuates, marginal costing shows a constant net
profit while absorption costing net profit would be varying.
- Over or under absorption of overheads (due to levels of activities being different from the
- Fixed costs are incurred on a time basis e.g. rent, rates, salaries, and they should therefore be
written off or expensed in the period in which they are incurred.
- Accounts prepared using marginal costing more nearly approach the actual cashflow position.
marto answered the question on February 26, 2019 at 09:45
- What are the arguments in favour of Absorption (Full) Costing?(Solved)
What are the arguments in favour of Absorption (Full) Costing?
Date posted: February 26, 2019. Answers (1)
- Factors to consider in make -or - buy decisions(Solved)
Factors to consider in make -or - buy decisions
Date posted: February 26, 2019. Answers (1)
- What is the role of cost accounting in decision making(Solved)
What is the role of cost accounting in decision making.
Date posted: February 26, 2019. Answers (1)
- Factors influencing cost estimation method used by a manufacturing company(Solved)
Factors influencing cost estimation method used by a manufacturing company
Date posted: February 26, 2019. Answers (1)
- What are the features of process costing.(Solved)
What are the features of process costing.
Date posted: February 26, 2019. Answers (1)
- Give the functions of budgets.(Solved)
Give the functions of budgets.
Date posted: February 26, 2019. Answers (1)
- List the ways to improve cash management.(Solved)
List the ways to improve cash management.
Date posted: February 26, 2019. Answers (1)
- What are the causes of difference in cost and financial accounts(Solved)
What are the causes of difference in cost and financial accounts
Date posted: February 26, 2019. Answers (1)
- Give the problems in cost estimation.(Solved)
Give the problems in cost estimation.
Date posted: February 26, 2019. Answers (1)
- Give the Limitations of budgeting(Solved)
Give the Limitations of budgeting
Date posted: February 26, 2019. Answers (1)
- Give the causes of stock discrepancies.(Solved)
Give the causes of stock discrepancies.
Date posted: February 26, 2019. Answers (1)
- Give the factors considered in selecting overhead absorption rate(Solved)
Give the factors considered in selecting overhead absorption rate
Date posted: February 26, 2019. Answers (1)
- Give the definition of a cost centre and its application(Solved)
Give the definition of a cost centre and its application
Date posted: February 26, 2019. Answers (1)
- Give the causes of labour efficiency variance(Solved)
Give the causes of labour efficiency variance
Date posted: February 26, 2019. Answers (1)
- Give the causes of labour rate and efficiency variances(Solved)
Give the causes of labour rate and efficiency variances
Date posted: February 26, 2019. Answers (1)
- Give the disadvantages of overstocking:(Solved)
Give the disadvantages of overstocking:
Date posted: February 26, 2019. Answers (1)
- Distinguish between the following Incremental costs and Marginal costs,cost centres and object centres,job costing system and process costing system,relevant cost and relevant range,(Solved)
Distinguish between the following Incremental costs and Marginal costs,cost centres and object centres,job costing system and process costing system,relevant cost and relevant range,
Date posted: February 26, 2019. Answers (1)
- Give the assumptions of break-even analysis.(Solved)
Give the assumptions of break-even analysis.
Date posted: February 26, 2019. Answers (1)
- Give the requirements of an effective stock control system.(Solved)
Give the requirements of an effective stock control system.
Date posted: February 26, 2019. Answers (1)
- Give the benefits of a standard costing system.(Solved)
Give the benefits of a standard costing system.
Date posted: February 26, 2019. Answers (1)