Marginalandabsorptioncosting边际和吸收成本法.pdf

Marginal and absorption costing Topic list Syllabus reference 1 Marginal cost and marginal costing D4 (a) 2 The principles of marginal costing D4 (a) 3 Marginal costing and absorption costing and the D4 (b), (c) calculation of profit 4 Reconciling profits D4 (d) 5 Marginal costing versus absorption costing D4 (e) Introduction This chapter defines marginal costing and compares it with absorption costing. Whereas absorption costing recognises fixed costs (usually fixed production costs) as part of the cost of a unit of output and hence as product costs, marginal costing treats all fixed costs as period costs. Two such different costing methods obviously each have their supporters and so we will be looking at the arguments both in favour of and against each method. Each costing method, because of the different inventory valuation used, produces a different profit figure and we will be looking at this particular point in detail. 225 PART D COST ACCOUNTING TECHNIQUES Study guide Intellectual level D4 Marginal and absorption costing (a) Explain the importance and apply the concept of contribution 1 (b) Demonstrate and discuss the effect of absorption and marginal costing on 2 inventory valuation and profit determination (c) Calculate profit or loss un