Absorption costing and marginal costing

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Querist : Anonymous

Querist : Anonymous (Querist)

08 March 2014 does absorption costing and marginal costing
are same

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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08 March 2014 both are different

Marginal costing is not a method of costing but a technique of presentation of sales and cost data with a view to guide management in decision-making.

but Absorption costing is
The traditional technique popularly known as total cost or absorption costing technique does not make any difference between variable and fixed cost in the calculation of profits. But marginal cost statement very clearly indicates this difference in arriving at the net operational results of a firm.

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