Unit 2 Absorption Costing and Marginal Costing

Unit 2 Absorption Costing and Marginal Costing-

2.0 Learning Objectives

2.1 Introduction

2.2 Meaning of Marginal Cost

2.3 Marginal Costing

2.4 Absorption Costing

2.5 Special Terms for Marginal Cost
2.5.1 Contribution
2.5.2 Cost Volume Profit Analysis
2.5.3 Break-Even Point
2.5.4 Angle of Incidence
2.5.5 Margin of Safety
2.5.6 Key or Limiting Factor
2.5.7 Assumptions underlying CVP Analysis / Break – Even Charts

2.6 Managerial Application of CVP Analysis.