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Marginal Costing

Babulal Maurya
30/05/2018 0 0

Marginal costing is variable costing only. No fixed cost is considered for decision making. It's cost of extra production, best mix, key factors and capacity availability formula.

1) sales_variablecost = contribution_fixedcost = profit

(2) profit volume ratio = contribution / sales*100

(3) breakeven sales = fixed cost / pv ratio

(4) margin of safety = acutal sales _ break even sales sales

(5) desired sales = desired profit /pv ratio 

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