Marginal Costing | CA Intermediate Cost & Management Accounting Chapter-14 | As Per ICAI New Scheme

Marginal Costing | CA Intermediate Cost & Management Accounting Chapter-14 | As Per ICAI New Scheme

In This Video We Will Discuss Marginal Costing all Concepts, Problems and Examples for CA Intermediate and CA Intermediate Cost and Management Accounting Chapter-14 in Single Video has been discussed by Chandan Poddar Sir For CA Intermediate Grooming Education. #CostingCommando

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⚫ 𝐂𝐀 𝐈𝐧𝐭𝐞𝐫 𝟑.𝟎: 𝐆𝐫𝐨𝐮𝐩 𝟏
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⚫ 𝐂𝐀 𝐈𝐧𝐭𝐞𝐫 𝟑.𝟎: 𝐆𝐫𝐨𝐮𝐩 𝟐
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Topics Covered:-
Basic Concepts in Marginal Costing
Marginal Costing Important Questions
Graphs in Marginal Costing
Application Based Questions in Marginal Costing

Time Stamp:
0:00 Intro
0:11 Marginal Costing
2:32 Break Event Point
13:42 Summary
15:22 Question
31:45 Application Based Question
36:45 Question

Marginal costing is the accounting system in which variable costs is charged to cost units and fixed costs of the period are written-off in full against the aggregate contribution. Its special value is in decision-making.This technique of costing is also known as “Variable Costing”,

Absorption costing is a method of costing by which all direct costs and applicable overheads are charged to products or cost centres for finding out the total cost of production. Absorbed
cost includes production cost as well as administrative and other costs. It is a principle whereby fixed as well as variable costs are allotted to cost units, i.e. full costs are charged to production.

Contribution = Sales - Variable cost of sales
= Fixed cost + Profit

CVP ANNALYSIS (COST –VOLUME-PROFIT ANALYSIS):
It is the analysis of three variables, viz. cost, volume and profit As quantity increases VC increases but FC remains same. So total cost also increases As quantity increases value of sale also increases PInitially when company sells small quantity of units total cost is greater than sales. So it incurs loss _ As it sells more & more quantity, sales exceeds total cost. So it makes profit _Level at which there is no profit no loss is called as B.E.P. (break evenpoint )
Analysis of cost-volume-profit involves consideration of the interplay of
the following factors:
(i) Volume of sales;
(ii) Selling price;
(iii) Product mix of sales;
(iv) Variable costs per unit; and
(v) Total fixed costs.

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