What arguments can be advanced in favor of variable costing?

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What is the difference between variable costs and fixed costs ?
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Moataz Elsabawy
13-February-2017

Gross Margin Costing

Question added by Nick Ivan
Date Posted: 2016/03/02

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by Frank Mwansa , ACCOUNTING LECTURER , FREELANCER

1. simple to operate

2. No apportionment of fixed costs

3. Contribution is more useful in decision making than profit information

4 Over/under absorption of overheads is avoided

5 Marginal costing is a great aid to decision making.

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