Marginal cost means the same thing as variable cost. The term is not a new one. The accountants' concept of marginal cost differs from Economists' concept of marginal cost. Economists define marginal cost as the additional cost of producing one additional unit. The Institute of Cost and Works Accountants of India defined marginal cost as, "the amount at any given [...]
Process Costing method applies to those industries, where the material has to pass through many processes for converting it into a finished product. This method is used in chemical products, oils, varnishes, soap, paints etc. Process Costing is another method of Costing employed for ascertaining the costs of goods and services of Processing Industries. This method can be applied in [...]
Contract costing is an extension of job costing system. It follows the same principles as job costing. In contract costing, a separate account is opened for each contract. All cost relating to such contract is debited to the Contract Account. Contract costing is the costing for big size jobs which are normally called contracts. The basic difference between contract and [...]