IDEAS home Printed from https://ideas.repec.org/a/bra/journl/v3y2012i3p48-61.html
   My bibliography  Save this article

An Insight Into the Two Costing Technique: Absorption Costing and Marginal Costing

Author

Listed:
  • Mariam Nawaz

    (Hailey College of Commerce University of the Punjab, Lahore 118-Jehanzeb Block, Allama Iqbal Town, Lahore, Pakistan)

Abstract

This paper will investigate the controversy that is innate between the two costing techniques; Absorption Costing and Marginal Costing and would throw light on which costing technique better serves its purpose in helping management for decision making process and if Marginal Costing technique is concluded as better technique then why it should not be used for external reporting purpose. This paper will only crystallize and highlight the issues descriptively and will not resolve the issues that are inherent between the two costing techniques. The unique thing about this paper is that it is in favor of treating fixed cost as product cost that is it is supporting the advocates of Absorption Costing Technique but it is against to consider profit as a function of production rather it believes that profit should only be considered as function of sales for stock valuation and to help management in decision making process that is, regarding this point it is supporting advocates of Marginal Costing.

Suggested Citation

  • Mariam Nawaz, 2013. "An Insight Into the Two Costing Technique: Absorption Costing and Marginal Costing," BRAND. Broad Research in Accounting, Negotiation, and Distribution, EduSoft Publishing, vol. 4(1), pages 48-61, March.
    • Handle: RePEc:bra:journl:v:3:y:2012:i:3:p:48-61
    as

    Download full text from publisher

    File URL: http://www.edusoft.ro/brand/RePEc/bra/journl/brand_4_nawaz.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Paul L. Posner, 2010. "Mandates: Fiscal Accountability Issues," OECD Journal on Budgeting, OECD Publishing, vol. 10(3), pages 1-22.
    2. Feng, Li & Figlio, David & Sass, Tim, 2018. "School accountability and teacher mobility," Journal of Urban Economics, Elsevier, vol. 103(C), pages 1-17.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Maria Isabel Pedro & Joao Cancio Martins & José António Filipe, 2018. "Competing globally with cost accounting: a case study," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 8(2), pages 1412-1412.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Seth Gershenson, 2016. "Performance Standards and Employee Effort: Evidence From Teacher Absences," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 35(3), pages 615-638, June.
    2. Vegas, E & Ganimian, A. J., 2013. "Theory and Evidence on Teacher Policies in Developed and Developing Countries," Working Paper 104291, Harvard University OpenScholar.
    3. Elizabeth Davidson & Randall Reback & Jonah E. Rockoff & Heather L. Schwartz, 2013. "Fifty Ways to Leave a Child Behind: Idiosyncrasies and Discrepancies in States' Implementation of NCLB," NBER Working Papers 18988, National Bureau of Economic Research, Inc.
    4. Matthew Shirrell, 2018. "The Effects of Subgroup-Specific Accountability on Teacher Turnover and Attrition," Education Finance and Policy, MIT Press, vol. 13(3), pages 333-368, Summer.
    5. Wilson, Sharon & Hannam, Kevin, 2017. "The frictions of slow tourism mobilities: Conceptualising campervan travel," Annals of Tourism Research, Elsevier, vol. 67(C), pages 25-36.
    6. Gershenson, Seth & Holt, Stephen B. & Papageorge, Nicholas W., 2015. "Who Believes in Me? The Effect of Student-Teacher Demographic Match on Teacher Expectations," IZA Discussion Papers 9202, Institute of Labor Economics (IZA).
    7. Roel Elk & Suzanne Kok, 2016. "The Impact of a Comprehensive School Reform Policy for Weak Schools on Educational Achievement; Results of the First 4 years," De Economist, Springer, vol. 164(4), pages 445-476, December.
    8. Dillon Fuchsman & Tim R. Sass & Gema Zamarro, 2023. "Testing, Teacher Turnover, and the Distribution of Teachers Across Grades and Schools," Education Finance and Policy, MIT Press, vol. 18(4), pages 654-675, Fall.
    9. Jonah Rockoff & Lesley J. Turner, 2010. "Short-Run Impacts of Accountability on School Quality," American Economic Journal: Economic Policy, American Economic Association, vol. 2(4), pages 119-147, November.
    10. Alonso, José M. & Andrews, Rhys & Jorda, Vanesa, 2019. "Do neighbourhood renewal programs reduce crime rates? Evidence from England," Journal of Urban Economics, Elsevier, vol. 110(C), pages 51-69.
    11. Sass, Tim R. & Hannaway, Jane & Xu, Zeyu & Figlio, David N. & Feng, Li, 2012. "Value added of teachers in high-poverty schools and lower poverty schools," Journal of Urban Economics, Elsevier, vol. 72(2), pages 104-122.
    12. Hege Marie Gjefsen & Trude Gunnes, 2015. "School accountability Incentives or sorting?," Discussion Papers 815, Statistics Norway, Research Department.
    13. Jessalynn James & Matthew A. Kraft & John P. Papay, 2023. "Local supply, temporal dynamics, and unrealized potential in teacher hiring," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 42(4), pages 1010-1044, September.
    14. repec:ces:ifodic:v:11:y:2013:i:2:p:19092425 is not listed on IDEAS
    15. Sam Sims, 2016. "High-Stakes Accountability and Teacher Turnover: how do different school inspection judgements affect teachers' decisions to leave their school?," DoQSS Working Papers 16-14, Quantitative Social Science - UCL Social Research Institute, University College London.
    16. Mansfield, Jonathan & Slichter, David, 2021. "The Long-Run Effects of Consequential School Accountability," IZA Discussion Papers 14503, Institute of Labor Economics (IZA).
    17. Karbownik, Krzysztof, 2020. "The effects of student composition on teacher turnover: Evidence from an admission reform," Economics of Education Review, Elsevier, vol. 75(C).
    18. Karbownik, Krzysztof, 2014. "Do changes in student quality affect teacher mobility? Evidence from an admission reform," Working Paper Series 2014:15, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    19. Stuit, David A. & Smith, Thomas M., 2012. "Explaining the gap in charter and traditional public school teacher turnover rates," Economics of Education Review, Elsevier, vol. 31(2), pages 268-279.
    20. Gjefsen, Hege Marie & Gunnes, Trude, 2016. "The effects of School Accountability on Teacher Mobility and Teacher Sorting," MPRA Paper 69664, University Library of Munich, Germany.
    21. Holbein, John B. & Ladd, Helen F., 2017. "Accountability pressure: Regression discontinuity estimates of how No Child Left Behind influenced student behavior," Economics of Education Review, Elsevier, vol. 58(C), pages 55-67.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bra:journl:v:3:y:2012:i:3:p:48-61. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Bogdan Patrut (email available below). General contact details of provider: http://brand.edusoft.ro .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.