Cost Accounting Marginal Costing Theory and Practice

Learn from Basics to advanced concepts in Marginal Costing to equip yourself for Professional Exams
5.0 (1 rating)
Instead of using a simple lifetime average, Udemy calculates a
course's star rating by considering a number of different factors
such as the number of ratings, the age of ratings, and the
likelihood of fraudulent ratings.
1,721 students enrolled
25% off
Take This Course
  • Lectures 31
  • Length 2.5 hours
  • Skill Level All Levels
  • Languages English
  • Includes Lifetime access
    30 day money back guarantee!
    Available on iOS and Android
    Certificate of Completion
Wishlisted Wishlist

How taking a course works


Find online courses made by experts from around the world.


Take your courses with you and learn anywhere, anytime.


Learn and practice real-world skills and achieve your goals.

About This Course

Published 3/2015 English

Course Description

Course Updated on 25th March 2015 with 7 Videos (including 4 Case Studies)

Marginal Costing is a technique of Decision Making adopted by Management of the Business Units.

Marginal Costing is practically applied in the following situations:

a) Performance Evaluation

b) Profit Planning

c) Fixation of Selling Price

d) Make or Purchase Decision

e) Optimizing Product Mix

f) Cost Control

g) Flexible Budget Preparation

Marginal Costing involves, ascertainment of costs, classifying the costs into Fixed and Variable Cost and using such information for analysis and decision making.

In this course, you will learn about

Marginal Costing,

Direct Costing,

Differential Costing

Variable Costs

Fixed Costs

Semi Variable Costs

Marginal Cost Sheet

Absorption Costing

Marginal vs Absorption Costing


Relationship between Contribution, Profit and Loss

Profit Volume Ratio

Break Even Point

Margin of Safety

Indifference Point

Shut down point.

All the above topics will be explained through Video Lectures.

You will learn the theory and practical problems of Marginal Costing in this course.

You should have some basic knowledge of costing and accounting for taking up this course.

This course is academic oriented.

This course is structured with an objective to enable you to equip for your examinations.

This course is structured in self paced learning style.

Take this course to understand the theory and practice of Marginal Costing.

What are the requirements?

  • Students should have basic knowledge of cost accounting
  • Students should have basic knowledge of accounting

What am I going to get from this course?

  • Understand What is Marginal Costing
  • Understand Difference between Marginal Costing and Other Costing Techniques
  • Understand Difference between Fixed and Variable Cost
  • Understanding Relationship between Contribution, Profit and Loss
  • Understand Decision Making Indicators like PV Ratio, BEP, MOS, IDP, Shut Down Point

Who is the target audience?

  • Students pursuing professional courses like CA / CMA / CS / CFA / CPA /CIMA / M.Com.
  • Non Accounting / Non Costing students should not take this course

What you get with this course?

Not for you? No problem.
30 day money back guarantee.

Forever yours.
Lifetime access.

Learn on the go.
Desktop, iOS and Android.

Get rewarded.
Certificate of completion.


Section 1: Introduction to Marginal Costing
Direct Costing
Differential Cost
Semi Variable Cost
Difference between Fixed Cost and Variable Cost
Section 2: Difference between Marginal Costing and Other Costing Techniques
Difference between Marginal Costing and Differential Costing
Difference between Marginal Costing and Direct Costing
Difference between Marginal Costing and Absorption Costing
Section 3: Formats
Format of Marginal Cost Sheet
Marginal Cost Equation
Absorption Costing Format
Section 4: Contribution and its relationship with Profit
Relationship between Profit or Loss and Contribution
Section 5: Break Even Point
Decision making Indicators in Marginal Costing
Profit Volume Ratio
Break Even Point
Break Even Point Example
Break Even Point Graph
Indifference Point
Difference between Indifference Point and Break Even Point
Shut Down Point
Section 6: Case Studies
Case Study on Segregation of Fixed and Variable Cost
Case Study on Break Even Point
Case Study on Computation of Sales for Desired Profits
Case Study on Price Volume Ratio and Break Even Point
Case Study on Profit Volume Ratio and Break Even Point
Case Study - Marginal Costing Basic Computations
Case Study - Break Even Point and PV Ratio
Case Study - Finding Fixed Cost, PVR and Sales
Case Study - Marginal Cost Sheet and Variable Cost Interpretation
Bonus Lecture - Discount Coupon Links for other Courses
8 pages

Students Who Viewed This Course Also Viewed

  • Loading
  • Loading
  • Loading

Instructor Biography

I am a Chartered Accountant with tonnes of passion for teaching.

I teach Financial Management & Strategic Financial Management for Chartered Accountancy, Cost and Management Accountancy and Company Secretary students in Ernakulam, India. I also hold Post Graduate Diploma in Business Administration in Finance from Symbiosis, Pune and Bachelors in Commerce, from Loyola College, Chennai.

I worked in State Bank of India as Assistant Vice President - Credit for a period of four years after which i started my Chartered Accountancy Practice. During the stint in State Bank of India, I worked on credit proposals of Mid Corporate Units and gained good experience in Financial Analysis, Risk Assessment, Viability Study, Evaluating business models, Project Finance, Working Capital Management, etc.

I conduct work shops for Entrepreneurs, Chartered Accountancy / Cost and Management Accountancy Students on the topics like Project Finance, Credit Risk Assessment, Entrepreneurship Development, Finance for Non Finance Executives, etc.

I love teaching and i want fundamentals of accounting and finance to reach students and so i am here.

Ready to start learning?
Take This Course