Marginal V absorption Flashcards

1
Q

Differences

A

Marginal costing only Applies these costs to inventory that were incurred when each individual unit was produced

While absorption costing applies all production costs to all units produced.

The profitability of each individual sale will appear to be higher under marginal than absorption

Marginal costing measures contribution margin whereas absorption costing measures net profit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly