Abstract
Finance is considered as the lifeblood OF any business enterprise. No business enterprise can survive without finance. The owners are always all always willing to know the financial position of their business, which can be acquainted with the help of financial statements. Marginal costing is the techniques of cost and Management accounting which is used to analysis the relationship between cost, volume and profit. The model of marginal cost is based on the classification of production cost between variable and fixed. Variable expenses are related with the volume of sales and production of the company, while fixed costs are related with a particular period. Generally, marginal costing depends on the contribution, where contribution is calculated as the difference between the sales and the variable cost of the production. When contribution of any company is more than its fixed cost, it is considered as more profitable.
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