Marginal / Variable cost
Possible discussion topics
l Appreciation and understanding of the nature of variable, semi-variable and fixed cost.
l Critically evaluate the benefits and limitation of adopting this method of costing products.
l Develop a numerical example where marginal costing would be appropriate. Chapter 4 of the core text book has excellent examples but DO NOT copy these directly – change the figures.
l This should assist in identifying a decision-making scenario where marginal costing / variable costing is more appropriate than the other two methods. Ensure you justify why this costing methods is most appropriate given the scenario developed.
Full / Absorption costing
Possible discussion topics
l Indicate a brief understanding and appreciation of how absorption costing is designed, implemented, and applied within differing business.
l Critically evaluate the costing method identifying some key benefits and limitation of adopting this costing method.
l Develop a numerical example highlighting the key concepts of how absorption/ full costing would be applied. Chapter 7 of the core text book & Workshop 3 would be extremely helpful in doing this. (DO NOT copy directly).
l This should assist in identifying a decision-making scenario where absorption/ full costing is more appropriate than the other two costing methods.
Use the order calculator below and get started! Contact our live support team for any assistance or inquiry.
[order_calculator]