Marginal Costing Technique as a Tool for Management Decision Making
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Abstract on Marginal Costing Technique as a Tool for Management Decision Making
This research was aimed at finding out what marginal costing is all about, to evaluate and critically examine the various application of marginal costing technique for decision and to investigate the problems arising from making use of the technique and then to provide possible solution to the problems based on the research findings, and also to make recommendations when if implemented, would help organization adopt the technique.
The data for the study were got from your principals sources questionnaire, library research, oral interview and personal observations.
The data were analysed with percentages while the tests and analysis of the research hypothesis were done using chi-square statistical technique.
This research has revealed that the importance of marginal costing technique ties in the good assistance it may give a solving problems. Marginal costing technique is concerned particularly with the ascertainment of marginal effect on profit of changes in volume or type of output by differentiating between fixed cost and variable cost. It helps to facilitate cost control and it brings out clear and simple terms which shows exact relationship between cost, selling price and volume. It is the researchers belief that those recommendation would help achieve the desired objectives. If properly adhered to by the organizations adopting the technique.
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