Unit 1: Marginal CostingAns1:
According to- The American Accounting Association,
Accounting includes the methods and concepts necessary for theeffective planning, for choosing alternative business actions and for
control through the evaluation and interpretation of performance.”
“Management Accounting is the process of id
entification,measurement, presentation, analysis, interpretation andcommunication of accounting information that assist the managementin planning , decision making, direction and control within theframework of fulfillment the organizational objectives.
Ans2:Strategic Management Accounting has been defined as "A form of management accounting in which emphasis is placed on informationwhich relates to factors external to the firm, as well as non-financialinformation and internally generated information
The emphasis was placed upon relative levels and trends in real costsand prices, volume, market share, cash flow and stewardship of theresources available to the business.Ans3:Absorption costing is a conventional technique of the asserting cost andprofit. It is practice under which all costs, weather fixed or variable, are
charged to operations or production process. So it is also known as “fullcosting” or “total costing” technique.