TECHNIQUES OF COSTING:
1.Marginal Costing:
it is a technique of cost accounting, which ascertains the marginal costs of a product or an operation by differentiating between fixed and variable costs. The technique reveals how volume and costs affect the profit
2. Absorption Costing
Under this technique both fixed and variable costs are charged to operations or processes. This is known as total cost technique. This technique is useful for preparing tenders.
3. Standard Costing
This is a technique of costing in which a comparison is made of the actual cost with predetermined (standard )cost and the deviations if any, are corrected. useful for cost control.
4. Budgetary control
technique of controlling costs by preparing budgets, coordinating activities of various departments, pinpointing their responsibilities and continuous comparison of actual performance with the budgeted.
1.Marginal Costing:
it is a technique of cost accounting, which ascertains the marginal costs of a product or an operation by differentiating between fixed and variable costs. The technique reveals how volume and costs affect the profit
2. Absorption Costing
Under this technique both fixed and variable costs are charged to operations or processes. This is known as total cost technique. This technique is useful for preparing tenders.
3. Standard Costing
This is a technique of costing in which a comparison is made of the actual cost with predetermined (standard )cost and the deviations if any, are corrected. useful for cost control.
4. Budgetary control
technique of controlling costs by preparing budgets, coordinating activities of various departments, pinpointing their responsibilities and continuous comparison of actual performance with the budgeted.
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