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Marginal Costing vs Absorption Costing | Top Differences You Must Know! [Video]

Marginal Costing vs Absorption Costing | Top Differences You Must Know!

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.

π–π‘πšπ­ 𝐒𝐬 𝐌𝐚𝐫𝐠𝐒𝐧𝐚π₯ 𝐂𝐨𝐬𝐭𝐒𝐧𝐠?
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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

π–π‘πšπ­ 𝐒𝐬 𝐀𝐛𝐬𝐨𝐫𝐩𝐭𝐒𝐨𝐧 𝐂𝐨𝐬𝐭𝐒𝐧𝐠?
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Absorption costing is a method which considers both fixed and variable costs as product cost

πƒπ’πŸπŸπžπ«πžπ§πœπž 𝐁𝐞𝐭𝐰𝐞𝐞𝐧 𝐌𝐚𝐫𝐠𝐒𝐧𝐚π₯ 𝐂𝐨𝐬𝐭𝐒𝐧𝐠 𝐯𝐬 𝐀𝐛𝐬𝐨𝐫𝐩𝐭𝐒𝐨𝐧 𝐂𝐨𝐬𝐭𝐒𝐧𝐠
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#1 – Marginal costing doesn’t 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 𝐌𝐚𝐫𝐠𝐒𝐧𝐚π₯ 𝐂𝐨𝐬𝐭𝐒𝐧𝐠 𝐯𝐬 𝐀𝐛𝐬𝐨𝐫𝐩𝐭𝐒𝐨𝐧 𝐂𝐨𝐬𝐭𝐒𝐧𝐠, you can go to this π₯𝐒𝐧𝐀 𝐑𝐞𝐫𝐞:- https://www.wallstreetmojo.com/marginal-costing-vs-absorption-costing/

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