Techniques of Costing:
In each of the costing methods, the following techniques may be used to ascertain costs:
(1) Absorption Costing: In this case both fixed and variable costs are allotted to cost
(2) Standard Costing: It uses standard costs and standard revenues for the purpose
of control through variance analysis.
(3) Marginal Costing: The term marginal costing is generally used in U.K. while in the
U.S.A. direct costing is the more popular term. According to this technique variable
costs are charged to cost units and the fixed cost attributable to the relevant period
is written off in full against the contribution for that period.
(4) Uniform Costing: It is not a separate method of costing. It is using of the same
costing principles or practices by several undertakings.
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