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Marginal costing

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(Querist)
02 December 2014 In marginal costing, if we charge general overheads as per labour hour and labour are busy and in short supply, and we apply labour to offer and regular work is affected, then will we charge overhead from offer or not?
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CA Kumar Mukesh

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CA Kumar Mukesh (Expert)
03 December 2014 Yes you need to add that general overhead as non recovery of sunk cost i.e. it will become relevant cost

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