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 ?
ββββββββββββββββ
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 ?
ββββββββββββββββββ
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
βββββββββββββββββββββββββββββββββββ
#1 β 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 β Marginal costing can be categorized as fixed costs and variable costs.Whereas, Absorption costing can be categorized as production, distribution, and selling & administration.
#3 β 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 β https://www.youtube.com/channel/UChlNXSK2tC9SJ2Fhhb2kOUw?sub_confirmation=1