In which technique of costing all the decisions are taken on the basis of variable cost and the cont...........

Finance (Phase -I & II) Analysis of Financial Statements

In which technique of costing, all the decisions are taken on the basis of variable cost and the contribution, the fixed cost is only used to calculate the profit:

Marginal costing

Standard Costing

Direct costing

Uniform costing

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Explanation:

Marginal costing is a costing technique wherein the marginal cost, i.e. variable cost is charged to units of cost, while fixed cost for the period is completely written off against the contribution. All the decisions are taken on the basis of variable cost and contribution. Fixed cost is used only to calculate profits.