--%>
Assignment Help - homework help

Limitations of Marginal Costing

Write down the limitations of Marginal Costing?

E

Expert

Verified

Limitations of Marginal Costing are illustrated below:

- The categorization of total costs into variable and fixed cost is hard.

- In this method fixed costs are completely eliminated for the valuation of inventory of finished and semi-finished goods. Such removal affects the profitability adversely.

- In marginal costing historical data is employed while management decisions are related to prospect events.

- It doesn’t give any standard for the valuation of performance.

- Selling price fixed on the base of marginal cost will be useful only for short period.

- Estimation of profitability on the marginal cost base can be employed only in the short period.

   Related Questions in Managerial Economics

  • Q : Demand for labor in competitive firm

    Demand for labor of this purely competitive firm in given figure corresponds to: (1) line segment ab. (2) line segment bd. (3) line segment be (4) line segment df. (5) line segment dg.

    Q : Illustrates the barometric pricing

    Illustrates the barometric pricing briefly?

    		•
  • Q : Determine the demand of auto-market

    Suppose that the auto market began at the intersection of S0 and D0 before people began to expect auto prices to rise in the close to future. How will it influence the auto market?: (1) No change. (2) Demand shifts to D2. (3) Demand sh

    		•
  • Q : Examples of Economic Capital

    Landscaping a garbage dump along with topsoil, grass and trees to construct a golf course is an illustration of creating new: (i) capital. (ii) land. (iii) employment. (iv) economic profits. (v) natural resources. Please guys help

    		•
  • Q : Illustrate signalling by example If

    If interviewing for a job like a bill collector for a loan shark, Bob mentions his degree into martial arts by the Hard Knox Reformatory, his summer internship along with BreakUrLegs, Inc., as well as his family links. Bob’s casual discussion of such credentials

    		•
  • Q : Explain the infinitely elastic demand

    Explain the infinitely elastic demand.

    		•
  • Q : What did professor Hidbon illustrates

    What did professor Hidbon illustrates about Demand?

    		•
  • Q : Negatively sloped over wage ranges The

    The supply curve of the labor is negatively sloped over wage ranges where the: (1) the demand for leisure rises along with income. (2) leisure is an inferior good. (3) people offer more hours of labor at higher wages. (4) some people

    		•
  • Q : Decline in consumer demand A decline

    A decline within consumer demand for a good tends to reduce demands for: (w) inferior goods. (x) alternative products. (y) resources producing the good. (z) union wage increases. Hey friends please give your opinio

    		•
  • Q : Trade types of cycle distinguished by

    What are the trade types of cycle distinguished by Schumpeter?

    		•