BNET Business Dictionary
Business Definition for: Marginal Costing
- the accounting system in which variable costs are charged to cost units and fixed costs of the period are written off in full against the aggregate contribution. Its special value is in recognizing cost behavior, and hence assisting in decision making.
- Also known as Variable Costing
Additional Resources
- Relevance added: Combining ABC with German cost accounting: activity-based costing is better for long-term decision making while a leading German cost accounting method supports short-term decisions more effectively
- Are you familiar with Grenzplankostenrechnung? Translated from German, it roughly means "flexible margin costing." Flexible margin costing, or GPK, is a time-tested cost accounting system used by many companies in German-speaking countries. GPK is about marginal costing instead of full costing, short-term decision support instead of long-term, and cost...
- Research articles 2005-06-01
- ABC v TOC: Same cloth as absorption v marginal, different style and cut.
- The accounting response to the growth of advanced manufacturing technologies and related management philosophies is restricted by the adherence to obsolete costing methods, such as absorption costing, according to Goldratt. However many accountants claim The accounting response to the growth of advanced manufacturing technologies and related management philosophies is restricted...
- Research articles 1998-04-01
- QUIZ: What's The Best Pricing Strategy
- SCENARIO: You're introducing a new product into a crowded market. The customer does not understand this product's internals, nor is it easy to compare features. You have no marketing budget, but can package your product to match any pricing strategy you choose. Your goal is to establish your brand in...
- Blog posts 2009-07-08
- Irrational Exuberance over Electronic Medical Records?
- When President-elect Obama outlined his economic stimulus package earlier this month, he emphasized the need to invest in the healthcare system's infrastructure by pushing for electronic health records EHR, nationwide: "We will make sure that every doctor's office and hospital in this country is using cutting edge technology and electronic...
- News items 2009-08-07
- Hybrid Cars: 5 Luxury Models to Test-Drive
- If you want to buy a hybrid, you don?t have to settle for an econobox. These gorgeous, gussied-up green vehicles are as luxurious as anything on the road. The only hitch: They aren?t as environmentally friendly as you might expect. Here?s a headlight-to-headlight comparison to help...
- Articles 2009-11-06
