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English definition of “marginal costing”

marginal costing

noun [U]     (also marginal pricing) ACCOUNTING
a system for calculating the cost of a product where overheads (= costs not directly related to producing it) are not included, but are calculated separately: Marginal costing gives an overall picture of the profit or loss situation. → Compare absorption costing
(Definition of marginal costing noun from the Cambridge Business English Dictionary © Cambridge University Press)
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