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.
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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
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Absorption costing is a method which considers both fixed and variable costs as product cost
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#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/
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