In this video, on Marginal Costing vs Absorption Costing, here we discuss top differences between Marginal Costing vs Absorption Costing along with infographics and comparison table.
ππ‘ππ π’π¬ πππ«π π’π§ππ₯ ππ¨π¬ππ’π§π ?
———————————————–
Marginal costing is a method which considers the variable costs as the cost of the product and the fixed costs as the cost of the period
ππ‘ππ π’π¬ πππ¬π¨π«π©ππ’π¨π§ ππ¨π¬ππ’π§π ?
—————————————————–
Absorption costing is a method which considers both fixed and variable costs as product cost
ππ’ππππ«ππ§ππ ππππ°πππ§ πππ«π π’π§ππ₯ ππ¨π¬ππ’π§π π―π¬ πππ¬π¨π«π©ππ’π¨π§ ππ¨π¬ππ’π§π
——————————————————————————————————–
#1 – Marginal costing doesnβt take fixed costs into account under product costing or inventory valuation. Whereas, Absorption costing takes both fixed costs and variable costs into account.
#2 – Marginal costing can be categorized as fixed costs and variable costs.Whereas, Absorption costing can be categorized as production, distribution, and selling & administration.
#3 – Marginal costing can be measured as a contribution per unit. Whereas, Absorption costing can be measured as net profit per unit.
To know more about the πππ«π π’π§ππ₯ ππ¨π¬ππ’π§π π―π¬ πππ¬π¨π«π©ππ’π¨π§ ππ¨π¬ππ’π§π , you can go to this π₯π’π§π€ π‘ππ«π:- https://www.wallstreetmojo.com/marginal-costing-vs-absorption-costing/
Subscribe to our channel to get new updated videos. Click the button above to subscribe or click on the link below to subscribe – https://www.youtube.com/channel/UChlNXSK2tC9SJ2Fhhb2kOUw?sub_confirmation=1
![How to Start an Indian Restaurant Business [Video]](https://video.ednadigitalmarketing.com/wp-content/uploads/2024/03/mp_22065_0_0jpg.jpg)
![IFRS 16 Lessee Accounting Example 2 [Video]](https://video.ednadigitalmarketing.com/wp-content/uploads/2021/06/mp_197_0_0jpg.jpg)
![Top 50 Customer Service Tips | How To Give Great Customer Service [Video]](https://video.ednadigitalmarketing.com/wp-content/uploads/2024/01/mp_20116_0_0jpg.jpg)
![Inspiring Short Stories | Seeking Happiness | Motivational & Inspirational Video [Video]](https://video.ednadigitalmarketing.com/wp-content/uploads/2022/02/mp_8764_0_0jpg.jpg)