06-11-2009, 03:32 PM
06-11-2009, 05:19 PM
Irfan , Direct Costing, also called as marginal/variable costing is a cost accounting method under which only variable cost of production( Which is directly related to the volume of production)is treated as a cost of goods sold and fixed manufacturing cost( Fixed cost is that cost which is incurred regardless of volume of production) is ignored, the resultant figure ( Sales - Variable Cost) indicates Contribution margin.
The purpose of applying this method is to ascertain the Break Even point, decision making when there are some limiting factors, selection of a most profitable product among multiple products etc.
Best Regards,
The purpose of applying this method is to ascertain the Break Even point, decision making when there are some limiting factors, selection of a most profitable product among multiple products etc.
Best Regards,
06-17-2009, 02:40 PM
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by irfan kazim</i>
<br />What is direct costing plz explain with suitable example that make my concept more clear about it
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
I have written a topic on direct costing you can also read it.
Regards,
Awais Aftab
<br />What is direct costing plz explain with suitable example that make my concept more clear about it
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
I have written a topic on direct costing you can also read it.
Regards,
Awais Aftab