📝 One-liners · 85 cards
Marginal Costing (Contribution, CVP, Break-Even, P/V Ratio & Margin of Safety)
What is marginal cost?
Cost of producing one additional unit; excludes fixed costs, includes only variable costs.
Define contribution in marginal costing.
Excess of sales price over variable cost per unit; first recovers fixed costs, then becomes profit.
What separates marginal costing from absorption costing?
Marginal costing charges only variable costs to products; absorption costing allocates fixed costs too.
State the CVP equation.
Profit = (Contribution per unit × Number of units) − Total Fixed Costs.
🔒
Unlock 85 revision one-liners
Interactive flashcard deck — flip every card to drill questions and answers, mark the ones you got wrong, and revise smarter for Marginal Costing (Contribution, CVP, Break-Even, P/V Ratio & Margin of Safety).
🪙
Unlock cost
300 coins
30-day access · re-unlocks free for 30 days