Question
Under marginal costing, which of the following cost will
NOT be attributed to the product cost?Solution
Marginal costing is a technique of costing in which only variable costs are treated as product cost and charged to the product. the fixed costs are treated as period cost and are therefore charged to the accounting period in which such fixed cost is incurred irrespective of the quantity and value of the products produced or sold. As such, rent, which is a fixed cost, will not be attributed to the product cost under marginal costing.
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• Current assets: ₹400 lakh
• Current liabilities: ₹250 lakh
• Inventory: ₹100 lakh
...A high Inventory Turnover Ratio, in comparison to industry average, may indicate:
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Calculate Return ...
A company has the following: Sales ₹10,00,000; Variable cost 60% of sales; Fixed cost ₹1,20,000. Contribution margin = ? Break-even sales = ?
