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A level Accounting help
- Thread starter Ambreen
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Would you, miss, be kind enough to explain the precise papers you are going to appear in? The AS level (Paper 1 and 2), and the A2 level (Paper 3 and 4)'s Marginal Costing is substantially different in magnitude of difficulty. By the way, members are always entitled to receive help on this forum.
To develop a thorough grasp over the working of Marginal Costing, you need to first differentiate it from the working of the other form of costing, Absorption Costing. In Absorption Costing, we include in the total cost of a product ALL costs (Fixed, variable, and semi-variable), while in Marginal Costing, we only take into account the variable elements of cost (separate the variable cost in semi-variable costs, if needed). That should be the building block of all marginal costing statements. The focus, hence, is on the business covering the variable costs through the revenue it earns. The surplus of revenue over variable costs, or contribution, can then be expected to cover the fixed profits, after which any contribution left would be called, profit.
To develop a thorough grasp over the working of Marginal Costing, you need to first differentiate it from the working of the other form of costing, Absorption Costing. In Absorption Costing, we include in the total cost of a product ALL costs (Fixed, variable, and semi-variable), while in Marginal Costing, we only take into account the variable elements of cost (separate the variable cost in semi-variable costs, if needed). That should be the building block of all marginal costing statements. The focus, hence, is on the business covering the variable costs through the revenue it earns. The surplus of revenue over variable costs, or contribution, can then be expected to cover the fixed profits, after which any contribution left would be called, profit.
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Hi sir.. Im going to take my exam this may june 2012.. and i need some serious study tips for accounting to get A in my AS level like u did~~~ 
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