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03.03.2021 •
Social Studies
Research for the requirements
for admission to additional
and higher education courses
National Senior Certificate (Nes)
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a Cerfficate
b Diplona
a) Degree
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Ответ:
"An Insight Into the Two Costing Technique: Absorption Costing and Marginal Costing"
Explanation:
The article which may be seen in the link highlights and reflects on the disparity between absorption costing and marginal/variable costing.
•The aim of this article is to establish, using evidence from research, as to which costing technique is better in serving its purpose for managerial-level decision making.
•The article hypothesizes whether marginal costing technique is the better of the two and if it is so, then why is it that this technique is not used for external reporting?
•This is a descriptive article and does not resolve any issues which are prevalent in the utilization of the two techniques.
•From its overall outlook, the article is actually inclined towards treating fixed cost as product cost which necessary translate into the fact that it is skewed in the direction of the use of absorption costing technique.
•However, it must also be noted that the article is actually against the consideration of profit as a production function; the article maintains that profit should be considered as a function of cells primarily due to the reason of stock valuation and for helping the management in the process of decision making.
•The authors, therefore, maintain that although absorption costing is the better technique, yet marginal costing technique must be used for treating profits as a function of sales.
The link to the article is as follows:
http://brain.edusoft.ro/index.php/brand/article/view/382/425