An Insight Into the Two Costing Technique: Absorption Costing and Marginal Costing

Mariam Nawaz ()
Additional contact information
Mariam Nawaz: Hailey College of Commerce University of the Punjab, Lahore 118-Jehanzeb Block, Allama Iqbal Town, Lahore, Pakistan

BRAND. Broad Research in Accounting, Negotiation, and Distribution, 2013, vol. 4, issue 1, 48-61

Abstract: This paper will investigate the controversy that is innate between the two costing techniques; Absorption Costing and Marginal Costing and would throw light on which costing technique better serves its purpose in helping management for decision making process and if Marginal Costing technique is concluded as better technique then why it should not be used for external reporting purpose. This paper will only crystallize and highlight the issues descriptively and will not resolve the issues that are inherent between the two costing techniques. The unique thing about this paper is that it is in favor of treating fixed cost as product cost that is it is supporting the advocates of Absorption Costing Technique but it is against to consider profit as a function of production rather it believes that profit should only be considered as function of sales for stock valuation and to help management in decision making process that is, regarding this point it is supporting advocates of Marginal Costing.

Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.edusoft.ro/brand/RePEc/bra/journl/brand_4_nawaz.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bra:journl:v:3:y:2012:i:3:p:48-61

Access Statistics for this article

BRAND. Broad Research in Accounting, Negotiation, and Distribution is currently edited by Bogdan Patrut

More articles in BRAND. Broad Research in Accounting, Negotiation, and Distribution from EduSoft Publishing
Bibliographic data for series maintained by Bogdan Patrut ().