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Marginal costing

Costing

In this question only machinery depreciation is taken into consideration why not machinery cost??

Devisree

CMA Inter

★ 0

26-Apr-24 14:23

Answers (3)

Best Answer

The answer is depreciation. Cost of machine has to be apportioned over its useful life. There is no other reasoning or logic

Pranay Mehta

Faculty

26-Apr-24 21:37

Because the cost has to be appointed over the useful life and not expensed out in a single period

Pranay Mehta

Faculty

26-Apr-24 20:43

Then since it is recurring it is taken but machinery purchase cost will not be recurring so it is not taken. Am I correct?

Thread Starter

Devisree

CMA Inter

★ 0

26-Apr-24 20:54

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