Unlocking Profit Potential: Marginal Costing Reveals Key to Financial Success
The study focuses on marginal costing in Godrej Consumer Product Ltd. Marginal costing separates variable costs from fixed costs to help managers make decisions. It includes direct labor, material, expenses, and part of overheads. The technique helps analyze how changes in output volume affect profits. Marginal costing introduces the concept of contribution, which is sales revenue minus variable costs. Contribution covers fixed costs and profits.