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What is Marginal Costing and Profit Analysis about?

1. Marginal costing is a technique that differentiates between fixed and variable costs. It treats variable costs as product costs and fixed costs as period costs. 2. Contribution is the difference between sales revenue and variable costs, or the amount available to cover fixed costs and profits. 3. Break-even analysis determines the sales volume at which revenues equal total costs, resulting in no profits or losses. It is an important tool for profit planning and decision making.

Author

varun raj

Language

EN