3.10 Marginal costing

Content	Additional information
Categorisation of costs by behaviour and understanding of terms.	Costs and terms are: direct costs indirect costs variable costs semi-variable costs fixed costs stepped costs marginal cost contribution (total and per unit) break-even.
Calculation and interpretation of break-even point, interpreting break-even charts and the uses and limitations of break-even analysis methods.	Break-even analysis methods are break-even calculations and break-even charts.
The use of marginal costing in decision making situations.	Decision making will involve the use of marginal costing techniques and consideration of non-financial factors. Decision making situations are: make or buy acceptance of additional work price setting optimum use of scarce resources closing of potentially loss-making line or production department target profit.

Content

Additional information

Categorisation of costs by behaviour and understanding of terms.

Costs and terms are:

Calculation and interpretation of break-even point, interpreting break-even charts and the uses and limitations of break-even analysis methods.

Break-even analysis methods are break-even calculations and break-even charts.

The use of marginal costing in decision making situations.

Decision making will involve the use of marginal costing techniques and consideration of non-financial factors.

Decision making situations are: