Module 4 - Marginal Costing

Question 1

Marginal costing steps

Answer 1

1. calculates sales revenue
2. calculate cost of sales (total units x variable production costs)
3. calculate variable non-production costs
4. calculate the fixed production and non-production costs

Question 2

Stock valuation under marginal costing

Answer 2

(Opening stock add actual production units less actual sales units) x total variable production cost per unit