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Accounts Unit 2-Marginal Costing

Accounts Unit 2-Marginal Costing

Assessment

Presentation

Professional Development

10th Grade - Professional Development

Hard

Created by

Ms Lett

FREE Resource

3 Slides • 1 Question

1

Accounts Unit 2-Marginal Costing

•Marginal Costing focuses on the impact of producing every additional unit on the firm’s costs, revenue and ultimately profit. 

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2

Costing Approach

  • •It therefore separates all costs into variable costs and fixed costs including Manufacturing and Non Manufacturing Costs.


3

Cost of Goods Manufactured

•The Cost of Goods Manufactured in the Marginal Costing income statement does not include fixed Manufacturing Costs. 

•Product Costs= Direct Materials+ Direct Labour + Variable Manufacturing  Overheads

                                                                

4

Multiple Choice

Direct Materials -$12,075

Direct Labour - $8,625

Variable Manufacturing Overheads - $3,450

Variable non manufacturing Overheads -$1,725

Fixed Manufacturing Overheads - $2,760

1

$24,150

2

$26,910

3

$20,700

4

$12,075

Accounts Unit 2-Marginal Costing

•Marginal Costing focuses on the impact of producing every additional unit on the firm’s costs, revenue and ultimately profit. 

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