marginal costing

= direct costing; = variable costing
A costing and decision-making technique that charges only the marginal costs to the cost units and treats the fixed costs as a lump sum to be deducted from the total contribution, in obtaining the profit or loss for the period. In some cases, inventory valuation is also at marginal cost, although this approach does not conform to Statement of Standard Accounting Practice 9 and is used for internal reporting purposes only.

Accounting dictionary. 2014.

Look at other dictionaries:

  • marginal costing — ➔ costing * * * marginal costing UK US noun [U] (also marginal pricing) ACCOUNTING ► a system for calculating the cost of a product where overheads (= costs not directly related to producing it) are not included, but are calculated separately:… …   Financial and business terms

  • marginal costing — direct costing; variable costing A costing and decision making technique that charges only the marginal costs to the cost units and treats the fixed costs as a lump sum to be deducted from the total contribution, in obtaining the profit or loss… …   Big dictionary of business and management

  • Marginal Costing — ⇡ Direct Costing …   Lexikon der Economics

  • marginal costing — Fin the accounting system in which variable costs are charged to cost units and fixed costs of the period are written off in full against the aggregate contribution. Its special value is in recognizing cost behavior, and hence assisting in… …   The ultimate business dictionary

  • standard marginal costing — In a marginal costing system, a system of cost ascertainment and control in which predetermined standards for marginal costs and income generated for products and operations are set and periodically compared with actual marginal costs incurred… …   Accounting dictionary

  • standard marginal costing — In a marginal costing system, a system of cost ascertainment and control in which predetermined standards for marginal costs and income generated for products and operations are set and periodically compared with actual marginal costs incurred… …   Big dictionary of business and management

  • costing — cost‧ing [ˈkɒstɪŋ ǁ ˈkɒːst ] noun [countable, uncountable] ACCOUNTING the process of calculating the cost of a future activity or product, or the calculation itself: • Railtrack originally said the scheme would cost £100 million, but last year… …   Financial and business terms

  • costing methods — The techniques and procedures used in cost accounting and management accounting to obtain the costs of services, products, processes, and cost centres to provide the information required to undertake performance measures, decision making,… …   Accounting dictionary

  • Marginal Budgeting for Bottlenecks — The Marginal Budgeting for Bottlenecks tool (MBB) is an analytical costing and budgeting tool that helps countries develop their health plans by taking into account the most effective interventions, cost and budget marginal allocations of their… …   Wikipedia

  • Marginal seat — Swing seat redirects here. For the piece of playground furniture, see swing (seat). A marginal seat, or swing seat, is a constituency held with a particularly small majority in a legislative election, generally conducted under a single winner… …   Wikipedia

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