APPLICATION OF MARGINAL COSTING

FOR
PROFIT PLANNING

Profit Planning is the main gaol of any business firm.

Profit planning thus becomes a vital starting point of
all managerial functions. Marginal costing technique
is extensively used by the management in profit
planning. A profit target is fixed and management
tries to achieve it by bringing changes in the factors
affecting the profit.
These factors are:

(A)Selling Price.
(B)Quantity sold.
(C)Variable cost per unit.
(D)Total Fixed costs.