“AN ANALYSIS OF MARGINAL COSTING TECHNIQUE OF PIPE TECH

HYDRAULIC MANUFACTURING COMPANY”

A PROJECT REPORT

SUBMITTED TO

PDEA'S PROF RAMKRISHNA MORE COLLEGE AKURDI, PUNE

FOR THE DEGREE OF MASTER IN COMMERCE

FACULTY OF COMMERCE

SUBMITTED BY

VAISHNAVI GOKULDAS LOYA

PROF. RAMKRISHNA MORE COLLEGE

EXAM SEAT NO:

UNDER THE GUIDANCE OF

DR. RAMDAS U. LAD

(M.Com. , M.Phil., Ph.D., NET- JRF,GDC&A, DTL, MBA)

PROF. RAMKRISHNA MORE COLLEGE

For the Academic Year

2022-23

1
 APPROVAL SHEET

(Viva Voce Committee)

TITLE OF PROJECT: “AN ANALYSIS OF MARGINAL COSTING TECHNIQUE OF

PIPE TECH HYDRAULCMANUFACTURING COMPANY”

NAME OF STUDENT: VAISHNAVI GOKULDAS LOYA

University Exam Seat No:

Accepted by the Viva Voce Committee, Department of Commerce, Faculty

of commerce, PDEA’S. Ramkrishna More College Akurdi, Pune in partial
fulfillment of requirements for the Degree of Master of Commerce
(M.COM)

VIVA VOCE COMMITTEE

1. …………………………. External …………………….

2. ………………..……….. Internal ………………………

Date: / / 2023

2
 CERTIFICATE

This is to certify that Miss. VAISHNAVI GOKULDAS LOYA has worked And
completed her Project Work for the degree of MASTER INCOMMERCE in
the faculty of COMMERCE in the subject of on Title of project work to be
written “AN ANALYSIS OF MARGINAL COSTING TECHNIQUE OF PIPE TECH
HYDRAULCMANUFACTURING COMPANY”. Under my supervision. It is his
own and facts reported by her personal findings & investigations.

DATE: / / 2023 Name & Sign of Guide

(DR. RAMDAS LAD)

3
 DECLARATION

I the undersigned Miss. VAISHNAVI GOKULDAS LOYA here by, declare that
This Project Work entitled “AN ANALYSIS OF MARGINAL COSTING
TECHNIQUE OF PIPE TECH HYDRAULCMANUFACTURING COMPANY” is a
result of my own research work, under the guidance of Dr. RAMDAS LAD
and has not been previously submitted to any other University for any
other examination.

I hereby further declare that all information of this document has been
obtained and presented in accordance with academic rules and ethical
conduct.

Date: / / 2023 Signature of Student

Place: AKURDI (VAISHNAVI GOKULDAS LOYA)

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 ACKNOWLEDGEMENT

Success is manifestation of diligence, perseverance, inspiration and

motivation, every nice work begins with a systematic approach towards
reaching successful. In my project work there is a direct and indirect
involved of many people at each stage. My project work will not be
completed until I acknowledge all those where involve in it. My first debt is
to Dr. Ramdas Lad sir for giving his valuable time and showing keen interest
in the project. And whose proper guidance and timely solution to problems
contributed in a big way in completing this project. I am thankful to our
H.O.D DR .P. S .Ingole for his support and facilities provided in-the
department. I would like to thank my teachers Prof. Vikas Gawali sir, Prof.
Vaibhav More sir and Prof. Rita Varma Mam for always motivating to do the
project work. I would be failing in my duty if I do not express my gratitude
towards my parents and my friends, they have been a greater source of
encouragement and inspiration.

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 INDEX

Sr.No. Particulars Page No.

1. CHAPTER NO 1
INTRODUCTION OF STUDY AND RESEARCH
METHODOLOGY
1. Introduction Of Study
1. Need for the Study
2. Objective of the Study
3. Justification of the Study
4. Source of Data
5. Method of study
6. Limitations of the Study
7. Technique of Analysis
2. CHAPTER NO. 2
MARGINAL COSTING
1. Introduction
2. Meaning , Definition and concept
3. Formula of Marginal costing
4. Characteristics
5. Importance
6. Advantages and Disadvantages
7. Review of literature

3. CHAPTER NO.3
PROFILE OF PIPETECH HYDRAULIC MANUFACTURING COMPANY

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 CHAPTER NO 1
INTRODUCTION OF STUDY
AND RESEARCH
METHODOLOGY

7
1.1. INTRODUCTION OF STUDY
Marginal costing is a very important technique for decision making. The
concept of marginal cost is based on the variable cost and fixed cost of the
production. Variable expenses depend on sales and production of the company,
when fixed cost is periodic cost. Marginal cost is increase or decrease in cost to
produce of a unit after certain production units. Generally, marginal costing
depends on the contribution, where contribution is the difference between the
sales and the variable cost of the production. The company's contribution is more
than its fixed cost as it is more profitable. This technique assumes that other
conditions are also not changed. E.g., materials, Labour, Efficiency, Wastage loss,
managerial policy and competition level etc.
Marginal Cost performance analysis is a term used to describe the
change in total cost of production resulting from the addition of one item. It can
also be seen as the avoidable cost of not producing an additional item. It is usual
to look at short term marginal cost, which is an additional cost when only some of
the cost of production can be varied in long term or more commonly known as
long run marginal cost is the change in cost when all input cost can varied. It is
closely related to marginal cost pricing, in which prices are set at an amount equal
to the Marginal Cost. Marginal costs are sometimes very difficult to assess. First,
we must determine the useful life of our machinery that can be a very subjective
determination. Marginal Costing is the ascertainment of marginal cost and of the
effect on profit due to changes in volume or type of output by different between
fixed cost and variable cost.
Marginal Cost = (Change in Cost / Change in Quantity)

1.2. NEED FOR THE STUDY / PROBLRM OF THE STUDY

The need of the study helps the Pipe Tech Hydraulic Manufacturing
Company to identify their position by which the company can increase or
decrease the total cost of production. It also helps to the company to identify
and offer a minimum rate of product price according to the expectations of the
customer so that the company’s sales level will get increased. Hence, this study
has been carried on marginal cost analysis.

1.3. OBJECTIVES OF THE STUDY

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  An Analysis about Marginal Cost Technique in Pipe Tech Hydraulic Manufacturing
Company.
 To examine Profit-volume ratio, Break-even point and Margin of safety of Pipe
Tech Hydraulic Manufacturing Company.
 To study the progress Pipe Tech Hydraulic Manufacturing Company.
 To help Pipe Tech Hydraulic Manufacturing Company to make decision by using
Marginal costing techniques.

1.4. JUSTIFICATION OF THE STUDY

The marginal cost technique is not the same as job or batch costing, process
costing, contract costing, or operating. All costing methods are used to calculate the
cost of products or services. Only variable costs of manufacturing are included in the
unit cost in the Marginal Costing Technique. Through the concept of marginal costing
techniques had been adopted by many establishment, the assumption couple with
other difficulties in its application as mentioned under the statement of the problem,
justified the need of this study.

(1) Marginal costing system is very useful for internal purposes – decision making,
planning and control.

(2) Calculation of cost of sales, under marginal costing system, is very simple to
understand.

1.5. SOURCES OF DATA

i. PRIMARY DATA

 The data is collected through the primary source, which include questionnaires
and personal interviews.
 The primary data for the year 2021-2022 refers to original information gathered
for a specific purpose and provides up to date, accurate and relevant information
and it is collected according to the needs of the study. The primary data were
collected by survey method with the help of questionnaires and interviews,
personal observation, direct consultation with farmers, and dealers and sub-
dealer.

ii. SECONDARY DATA

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  The secondary data can be defined as data collected by someone else for
purposes other than solving problem being investigation and books, periodical,
journals, office records, papers, company records, internet etc.

1.6. METHOD OF STUDY

 Quantitative methods do a much better job of answering how many and how
many types of questions and are used to measure product performance against
itself or its competition. Quantitative data is often useful for exploring an issue. It
helps you understand the thought processes of the user.

It can be used to:

a. Compare two or more formulas while doing usability testing.

b. Compute expected cost savings from the changes you will make.
c. Conduct quick easy and dry research.

 In this study Analytical Method is used. Analytical method is use to calculate

marginal costing techniques and it is determined on the basis of past records. It
helps to collect data. Research methodology is a way to systematically solve the
research problem.

1.7. LIMITATIONS OF DATA

 The data taken here of PIPE TECH HYDRAULIC MANUFACTURING COMPANY is

limited to one financial months only.
 The point of view of analyzing the above data by us and by the company may
vary.
 The data may not be useful in studying any other year except the above listed
2021-2022.
 The point considered by us as negative one may be the positive one from the
view point of company.

1.8. TECHNIQUE OF ANALYSIS

Marginal Costing technique is helpful for cost control, cost management and to make
decision for Pipe Tech Hydraulic MANUFACTURING Company. It is easier for the businesses
to manage and utilize the resources well and to study the impacts of marginal costing.

Tools to be used

 Profit volume Ratio

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 The Profit volume (PV Ratio) is the relationship between contribution and sales. It is
also termed as contribution to sales ratio. Significance of PV Ratio
PV Ratio is considered to be the basic indicator of the profitability of the business.
The higher the PV Ratio, the better it is for a business. In the case of a firm enjoying
steady business conditions over a period of years, the PV Ratio will also remain
stable and steady. If PV Ratio is improved, it will result in better profits.

 Margin of safety
The margin of safety is the amount of sales the business can afford to lose and still
not make a loss. It is the difference between the budgeted sales volume or revenue
the budgeted break-even volume (or revenue). It can be expressed in units /
products or € sales or as a percentage.
 Break-Even Point
The break-even point is the point at which neither profit or a loss is incurred. Break-
even occurs where total contribution is exactly equal to fixed cost and sales revenue
is exactly equal to variable cost plus fixed cost.

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 CHAPTER NO 2.
MARGINAL COSTING

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 2.1.INTRODUCTION

Marginal costing is a technique/system of presentation of sales and cost data with a

view to guide the managers for taking short term decisions like sales mix selection,
make or buy, acceptance of special order, etc. It is also used by the managers for
cost control, budgeting and profit planning purposes.

The marginal costing technique is crucial for any business aiming to optimize the
production of goods or delivery of services. The concept technically means extra costs
added to the production cost due to additional unit(s). It helps companies determine the
selling price of a product or service. Furthermore, they can estimate the desired output
by understanding marginal and sales costs. It simply works like this:

 Sale or Unit price > Marginal cost = More production = Profit

 Marginal cost > Sale or Unit price = Less production = Loss

Moreover, entities can calculate the price associated with resources needed to scale up
the production of additionally ordered items. Also, it enables managers to estimate
production expenses and budget, avoiding last-minute resource shortages.

Marginal costing varies with the production level and volume. Based on this, it can be
either short-run (i.e., fixed costs for additional production in a short time) or long-run
(i.e., variable inputs for extra output in more time).

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2.2. MEANING DEFINITION AND CONCEPTS
2.2.1 MEANING

“Ascertainment of marginal costs and of the effect on profit of change in volume or

type of output by differentiating between fixed costs and variable costs. Note – In
this method of costing, only variable costs are charged to operations, processes or
products while fixed costs are written-off against profits in the period in which they
arise. The system of marginal costing, therefore, is a technique of cost accounting
which differentiates between fixed costs and variable costs and shows the effect on
profit of changes in the volume of output”.

One additional-unit of production is known as marginal unit and the change in total
cost on account of adding or subtracting one unit is known as marginal cost.

“Marginal costing is that technique which studies the increase or decrease in total
cost as a result of increase or decrease of one unit of production.”

“Marginal costing is the ascertainment by differentiating between fixed and variable

costs.” – (I.C.M.A. London)

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2.2.2 DEFINITIONS

 MARGINAL COSTING
Marginal costing is used for managerial decision-making. It can be used in
conjunction with any method of costing, such as job costing or process costing.
It can also be used with other techniques of costing like standard costing and
budgetary control. In this, only variable cost is considered.

The term ‘marginal costing’ has been defined by the Chartered Institute of
Management Accountants (CIMA), London, as –“The accounting system in which
variable costs are charged to cost units and fixed costs of the period are written
off in full against the aggregate contribution. Its special value is in decision-
making.”

 MARGINAL COST: 

Marginal cost is the amount at any given volume of output by which aggregate cost
are changed of the volume of output is increased or decrease by one unit. The
marginal cost of a product is alternatively known as its variable cost, which includes
direct material, direct labor and direct experiences and the variable part of
overheads.   

 FIXED COST:

Fixed cost is a cost that accrues in relation to the passage of time and which, within
certain output and turnover limits, tends to be unaffected by fluctuations in the level
of activity. It is treated as period cost and is charged in full to the profit and loss
account of the accounting period which they are incurred.

 CONTRIBUTION:

Contribution is the different between sales value at the variable cost of those sales
expressed either in absolute terms or as a contribution per unit.  This is the central
point in marginal costing. The contribution per unit is expressed as the different
between the selling price and its marginal cost. Marginal costing cannot be used
without calculating the contribution.

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 VARIABLE COST

Variable costs are costs that fluctuate based on the amount of product you sell. This
could include things like materials, commissions, payment processing, and labor.
Some costs can go in either category, depending on the company. If they have
salaried staff, they will go under fixed costs. But if you pay part-time hourly
employees who only work when it's busy, they will be considered variable costs.

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 2.3. MARGINAL COSTING FORMULAS

Marginal Costing equation, profit volume ratio, Break-even point, Margin of safety, cost
break-even point, finding the selling price, finding the profit,.

1 Marginal Costing Equation Sales – VC = FC + Profit

2 Contribution Sales – VC

Profit + FC

3 Profit Volume Ratio Contribution / Sales

(In Marginal Costing,

Profit = Contribution) Change in Profit / Change in Sales

(Profit = EBIT) Change in Contribution / Change in Sales

100% – VC Ratio (PV % + VC % = 100% of

Sales)

4 Break Even Point Total Revenue = Total Cost

Break Even Point(In Rupees) FC / PV Ratio

Break Even Point(In Rupees) Break Even Point * Selling Price

Break Even Point(Quantity) FC / Contribution Per Unit

Note: At BEP, Total Contribution = Total Fixed Cost

5 Margin Of Safety Total Sales – Break even Sales

Margin Of Safety(In Rupees) Profit / PV Ratio

Margin Of Safety(Quantity) Profit / Contribution Per Unit

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6 Indifference Point / Cost Break Even Point Total Sales = Total Profits

(In Rupees) Difference in FC / Difference in VCR

(In Rupees) FC / PVR

(In Quantity) Difference in FC / Difference in VC Per Unit

(In Quantity) Difference in FC / Difference in Contribution

Per Unit

2.4. ADVANTAGES AND DISADVANTAGES

Correct marginal costs estimation can help managers develop budget and profit plans
for the next production cycle. It means an inaccurate calculation can lead to massive
losses to manufacturing units. Thus, it has both pros and cons, which are as following:

2.4.1. ADVANTAGES OF MARGINAL COSTING

1. Constant in nature

While variable costs occasionally change, marginal costs are stable over the long term.
Regardless of the level of production, margin costs are constant.

2. Effective cost control

It divides cost into fixed and variable. Fixed cost is excluded from product. As such,
management can control marginal cost effectively.

3. Simplified treatment of overheads

By separating fixed overheads from production costs, it lessens the degree to which
overheads are over or under recovered.

4. Helpful to management

Management finds it helpful because it makes it possible to launch a profitable new

production line. Finding out whether to buy or manufacture a product helps determine

18
the more profitable one. Regarding pricing and tendering, management has the final
say.

5. Helps in production planning

It shows the amount of profit at every output level with the help of the cost-volume-
profit relationship. Here the break-even chart is made use of.

6. Decision-making

Marginal costing helps management with adequate information appropriate enough for
making vital business decisions such as making or buying discontinuance of a particular
product or a particular line of activity, pricing during the depression, export pricing,
appropriate product mix, replacement of machines, sub-contracting, etc.

7. Better results

When used with standard costing, it gives better results.

8. Fixation of selling price

The differentiation between fixed costs and variable costs is very helpful in determining
the selling price of the products or services. Sometimes, different prices are charged for
the same article in different markets to meet varying degrees of competition.

9. Responsibility accounting

Since under marginal costing, fixed expenses are treated as period costs, there is no
arbitrary allocation of such expenses to the various departments. As such, responsibility
accounting becomes more effective when it is based on marginal costing.

10. "Make or Buy" decision

Sometimes a decision has to be made whether to manufacture a component or a

product or to buy it ready-made from the market. The decision to purchase it would be
taken if the price paid recovers some of the fixed expenses.

2.4.2. DISADVANTAGES OF MARGINAL COSTING

1. Difficulty of Segregation

Since marginal costing is the ascertainment of marginal cost and the effect on profit of
changes in the volume or type of output by differentiating between fixed costs and
variable costs, it is necessary to segregate the expenses into fixed and variable items.

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However, it is not that easy to segregate the expenses. Most of the expenses are neither
totally variable nor wholly fixed. \ Otherwise, the technique ceases to be accurate.

2. Time element ignored

Fixed costs and variable costs are different in the short run, but in the long run, all costs
are variable. In the long run all costs change at varying levels of operation. When new
plants and equipment are introduced, fixed costs and variable costs will vary.

3. Difficulty in the fixation of price

Under marginal costing, the selling price is fixed based on contribution. In case of cost
plus contract, it is very difficult to fix price.

4. Complete information not given

It does not explain the reason for the increase in production or sales.

5. Stock Valuation

Apart from work-in-progress in the case of large contracts, even stocks of manufacturing
concerns cannot be shown in the balance sheet by excluding fixed costs. If they are
excluded, stocks of work-in-progress and finished goods would be undervalued, and to
that extent, the balance sheet fails to reflect a true and fair view of the affairs of the
business.

6. Significance lost

In capital-intensive industries, fixed costs occupy major portions of the total cost. But
marginal costs cover only variable costs. As such, it loses its significance in capital
industries.

7. The problem of variable overheads

Marginal costing overcomes the problem of over and under-absorbing fixed overheads.
Yet there is the problem in the case of variable overheads.

8. Sales-oriented

Successful business has to go in a balanced way regarding selling production functions.

But marginal costing is criticized because of its over-importance to the selling function.
Thus it is said to be sales-oriented. Production function is given less importance.

9. Claim for loss of stock

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Insurance claim for loss or damage of stock based on such a valuation will be
unfavorable to the business.

10. Difficulty in Application

The technique of marginal costing is difficult to apply in industries like shipbuilding,

contracts, etc., where the value of work-in-progress is large in proportion to turnover.
Thus, if fixed overheads are not included in the closing value of work-in-progress, losses
on contracts may result in every year, while on completion of the contract, there may be
large profits.

2.5. CHARACTERISTICS OF MARGINAL COSTING

The technique of marginal costing is based on the distinction between product costs
and period costs. Only the variables costs are regarded as the costs of the products
while the fixed costs are treated as period costs which will be incurred during the
period regardless of the volume of output. The main characteristics of marginal
costing are as follows:

1. All elements of cost are classified into fixed and variable components. Semi-
variable costs are also analyzed into fixed and variable elements.

2. The marginal or variable costs (as direct material, direct labor and variable
factory overheads) are treated as the cost of product.

3. Under marginal costing, the value of finished goods and work-in-progress is also
comprised only of marginal costs. Variable selling and distribution are excluded for
valuing these inventories. Fixed costs are not considered for valuation of closing
stock of finished goods and closing WIP.

4. Fixed costs are treated as period costs and are charged to profit and loss account
for the period for which they are incurred.

5. Prices are determined with reference to marginal costs and contribution margin.

6. Profitability of departments and products is determined with reference to their

contribution margin.

7. Cost of sales are calculated after taking all variable costs (e.g., direct materials,
direct labor, direct expenses, variable production, selling and administrative
overheads).

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8. The difference between sales revenue and cost of sales is called contribution.
Fixed costs are adjusted against contribution.

2.6. IMPORTANCE (APPLICATIONS/USES):-

1) Easy:

In this method calculation is very easy and understandable. Cost is found is only
considering variable cost is therefore easy.

2) Profit Planning

Another importance application of marginal costing is the area of profit planning. Profit
planning, generally known as budget or plan of operation may be defined as the
planning of future operations to attain a defined profit good

3) Cost control

Fixed cost remains same with production while variable cost can be appropriately
controlled and therefore cost can be control.

4) For Decision making

This technique is very applicable for decision making for managers. It is useful to select
an appropriate choice from various best choices relating to production and profit of the
organization.

(a) Make or Buy: - Some loose parts used in production of a firm, make or buy in the
organization is decided through marginal costing.

(b) Foreign order: - Marginal costing is also useful to either take foreign order for certain
products to the factory or not.

(c) Key Factor: - Marginal costing is also useful to decide how many units of a certain
product to produce where there is a scarcity of either materials or labour and also
machine hours.

(d) Production options: - (Choice) Marginal costing is also applicable to decide to

produce a profitable product out of various production choices.

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(E) For Differentiate co: - In the factory from different levels of production, which
volume of production is profitable one is easily decided. Flexible budget about different
units is also prepared with application of marginal costing.

5) In Inflation time :-

In Inflation time, maximum profit can be made by maximum production and selling.
In these circumstances, Marginal costing helps in deciding an actual level of
production at which optimum profit can be earned.

6) In Deflation time :-

In Deflation time, maximum loss may arise. So marginal costing helps in deciding the
actual level of production and selling of products at which no loss assume.

2.5. LITERATURE REVIEW

 A Study on Marginal Costing in Tata Steel Ltd. - Neeraj Kumar Gupta - IJFMR Volume
5, Issue 1, January-February 2023. DOI 10.36948/ijfmr.2023.v05i01.1662. 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.

 Bauer, Daniel, and George Zanjani. "The marginal cost of risk, risk measures, and
capital allocation." Management Science, ISSN: 1431-1457, Volume 62(5), Year 2016.
Financial institutions use risk measures to calculate the marginal capital cost when
expanding the exposure to a certain risk within their portfolio. We reverse this
approach by calculating the marginal cost based on economic fundamentals for a
profit-maximizing firm and then by identifying the risk measure delivering the
correct marginal cost. The resulting measure depends on context. Whereas familiar
measures can be recovered in some circumstances, other circumstances yield

23
 unfamiliar forms. In all cases, the risk preferences of the institution’s claimants
determine how the correct risk measure must weight various default states. Our
results demonstrate that risk measures used for pricing and performance
measurement should be chosen based on economic fundamentals and may not
necessarily adhere to the mathematical properties typically imposed in the
literature.

 Robert E Hall “MARGINAL COSTING AS AN ESSENTIAL TOOL FOR DECISION MAKING

IN A MANUFACTURING COMPANY FOR DECISION MAKING IN A MANUFACTURING
COMPANY” National Bureau of Economic Research, ISSN: 24574, Volume 5(2), May
2018 This report revealed the result of an investigation into the marginal costing
Technique as an essential Tool for Decision Marking in a manufacturing company,
with a particular reference to the Anambra Motor Manufacturing Company
(ANAMMCO), EmeneEnugu. This research offers the researcher the opportunity to
study marginal costing as a tool for decision making as it is practiced in ANAMMCO...
Read more at: https://www.grossarchive.com/project/accounting/3378-marginal-
costing-as-an-essential-tool-for-decision-making-in-a-manufacturing-company-for-
decision-making-in-a-manufacturing-companya-case-study-of-anamco-enugu.

 In 1938, Harold Hotelling formally advanced the position that "the optimum of the
general welfare corresponds to the sale of everything at marginal cost."' To reach
this optimum, Hotelling argued, general government revenues should "be applied to
cover the fixed costs of electric power plants, waterworks, railroad, and other
industries in which the fixed costs are large, so as to reduce to the level of marginal
cost the prices charged for the services and products of these industries."2 Other
major economists of the day subsequently endorsed Hotelling's view' and, in the late
1930s and early 1940s, it "aroused considerable interest and [had] already found its
way into some textbooks on public utility economics."'

 KK SHARMA has studied the pains and problems of shortage and surplus cement
industry in the past decades. The transformation of cement scenario from acute
scarcity to huge surplus has depressed prices for uneconomic levels playing have
wind the bottom line of many producers.

 RAMACHANDIRA REDDY & YUVARAJA REDDY 2007 examined the effect as selected
variables on MVA. This study was conducted with 10 cement companies in Indian
and the objective of his study was to examine the effect of select variables on MVA.
For this purpose multiple regression technique has been used to test the effect of

24
 select variable on MVA. The study found that none of the factors is found to have an
impact on MVA and BPS is found to have a negative and significant impact on MVA.
The study concluded that the performance of select cement companies in terms of
profitability cannot be increased unless the improved problems like modernization,
cost reduction, control taxes etc, are solved.

 J.O. THOMAS, BRIENT, & PAUL A. VANDERHEIDEN in their study “empirical

measurement of operating leverage for growing units’, have discussed the
relationship between the degree of operating leverage and the ratio between Total
Assets & Net Sales, depreciation and Total Assets.

 ECONOMIC ANALYSIS GROUP DISCUSSION PAPER of Marginal cost and Variable cost
Economists sometimes decry the persistence with which firms set prices above
marginal cost and thus, according to the economists, fail to maximize profits. But it is
the economists who have it wrong – first, because variable accounting costs are not
always a good proxy for marginal economic costs, but more importantly because in
an industry with U-shaped cost curves, a firm at a long-run sustainable equilibrium
faces increasing marginal costs – i.e., a rising shadow price on some constrained
input – i.e., in general, a cost of capital. A corollary is that in such an industry the
equilibrium mark-up over variable cost varies directly with capital intensity. JEL
classifications: B21, D24, D43, K21, L11, L40

25
 CHAPTER NO.3
PROFILE OF PIPETECH
HYDRAULIC
MANUFACTURING
COMPANY
26
3.1. INTRODUCTION

Pipe Tech Hydraulic

Incorporated in the year 2000, Pipe Tech Hydraulic is a foremost Wholesaler, Distributor
and Service Provider engrossed in offering a wide range of products and services
like Brass Fittings, Lubrication Systems, Pneumatic Fittings, Power Pack, Copper Pipe and
SS Pipes, Hose Pipes, Hydraulic Fitting Parts and Accessories, Hydraulic Valves and
Pumps, Hydraulic Pipe works etc.  The products we offer are designed and developed
with precision; these are made making use of top class basic inputs along with modern
tools and tackles. Known for their applications in different industrial applications, these
offered products are made at the premises of our suppliers. Also, these are well checked
at the premises of our customers on time. Besides this, the services offered by us are
delivered on time as per the changing needs and necessities of our customers. Pipe Tech
Hydraulic is one of the leading Distributors of Parker Hydraulic Hose Pipe.

We being a highly reliable organization understand the significance team plays in the
functionality of an entity thus have employed an accomplished team with us to
complete all our administrative goals and objectives within the promised frame of time.
Being highly dedicated and qualified, they assist us in successfully finishing all our
consignments in sole and bulk. Along with this, their harmonized functioning and
competence have assisted us to retain the status we have mustered in this market.
Besides this, we organize regular training sessions and seminars at our premises so as to
update our crew about the advancements taking place in the industry.

Since our inception in this highly competitive industry, we are functioning efficiently
beneath the supervision of our guide Mr. Prakash Akhande. His immense ability and
capability to understand the changing desires has garnered us vast acknowledgement
from our patrons.

27
 Establishment in this industry, they are focused towards maintaining for ourselves a
reputed standing in the industry. With their hard work, they are almost successful in
attaining this objective. Right from the production of products to their quality testing
and final delivery, our offered product range is made with perfection. Also, our services
are delivered with extreme precision. Not only this, but the rates at which we present
our range to our customers, flexible modes of payment and our promise of delivering
our range on time makes us a preferred market choice. Some other factors behind the
success of our firm include: 
 Reasonable rates
 On time delivery
 Huge distribution network
 Customized solutions
 Multiple payment options
 Ethical business strategies
 Clarity in deals

3.2. MISSION, VISION AND OBJECTIVE

MISSION

The vision of Pipe Tech Hydraulic Manufacturing Company is to continue the heritage of our
Company and be a premier Indian manufacturer of top quality products. We dedicate
ourselves to be the supplier of choice when our type of products being sought. This vision
will be accomplished by sharing the responsibilities of planning and decision making with all
of our employees Pipe Tech Hydraulic Manufacturing Company will strive to maintain the
image it has developed over the many months with its suppliers, employees and
community as a company of excellence.

VISION

Pipe Tech Hydraulic Manufacturing Company mission is to produce and continually develop
quality products at a competitive price while fostering a climate where environmental
technologies can thrive. Pipe Tech Hydraulic Manufacturing Company will always strive to
28
service our customer with the utmost integrity, and to their complete satisfaction. It is our
goal to ensure our mission by continuous self improvement, growth in our operations and
employees; while maintaining profitability to the benefit of our customers, employees, and
community. All employees will work together in combining their efforts and skills to ensure
our mission and goals are fulfilled in a courteous manner.

OBJECTIVE

We aim high at being focused on building relationships with our Clients and Business
Communities. Using our Creative gifts to drive the Organization, time has come to bring
those ideas and plans to life. This is where we really focus and implement the same with
our Employees through our innovative HR policy.
We are pleased to tell that we are successful in sustaining our Quality team as ‘Asset’ to our
future. It allows us to even aim high to reach miles in the Industry.

3.3. PRODUCTS / SERVICES

Regarded as one of the eminent business name, we are betrothed in the domain of
offering to our patrons a pristine grade spectrum of products and services
including External Coatings, Waterproofing and Polymer Coatings, Concrete
Admixture, Concrete AID, Grout and Anchors, Sealants and Adhesives, Epoxy and
Mortar, APP Membrane and Fiber Mesh, Industrial Flooring and Precast Products
etc.

The Pipe Tech Hydraulic Manufacturing Company is a Manufacturer, Supplier, Distributor,

Service Provider of Hydraulic Fittings, Suction Strainers, Filler Breather, Tank Breather,
Pressure Gauges, Gear Coupling, Fluid Level Indicator, Bell Housing, Pipe Clamps, Dowdy
Seal And Copper Washer, Manifold Blocks / Sub plates, Inline Check Valves / Sub plot Type,
Pilot Operated Check Valves, Flow Control Check Valves, and our set up is situated in Pune,
Maharashtra, India.

Some examples of products are below

29
 Suction Strainer

Sc Sc3 Sc3
Sc3 Sc3 Sc3 Sc3 Sc3 Sc3 Sc3 Sc3 Sc3 Sc3
Model No. 3 10 15
02 03 05 07 15 20 30 40 50 75
10 0 0

1 1 1 2
Connectio 1/4 3/8 1/2 3/4
1" 1/4 1/2 1/2 2" 2" 1/2 3" 3"
n BSP (F) " " " "
" " " "

16 20 40 60
Flow (Ipm) 8 12 20 25 40 60 80 120 300
0 0 0 0

• Reusable stainless steel 100 mesh standard

• Sturdy all metal plated steel construction
• Filtration 146 Microns
• Paper filtration also available as per custom built- Any standard

Filler Breather Tank Breather

30
Model No. FSB-05 FSB-25 TB-05 TB-25

Connection BSP (F)     1/4" 3/4"

Flow (Ipm) 150 750 150 750

• Stainless Steel Cap. vents underneath

• Filtration 40 microns standard
• Metal or plastic strainer standard

Pressure Gauge

Model No. Flow LDM/GDM A B C D E F G

31
BMF 80/20 210 103 60 70 85 15 50

32
 Gear Coupling

Model No. JT-19 JT-28 JT-38 JT-48 JT-65

Pilot Bore (mm) 7 10 12 15 20

Suitable Motor HP 0.25-1 1-5 5-10 10-30 40-60

• Material Steel hub & high graded plastic material sleeve

Fluid Level Indicator

• 'O' Ring type construction

• FACE TYPE : 3" & 5" between Bolt centers
• FACE TYPE : 1/5" to 1 1/2" BSP (M)
Connection

Bell Housing

33
 • Material high grade C.I. casting
• Size - 0.5 HP to 50 HP
• Suitable for gear pump, Vane
pumps, Piston Pumps
• Also Available coupling with bolt kit

Pipe Clamps

• High density polythene mold and

mild steel plates construction
• Heavy and light Duty
• Range 6mm to 324mm pipe

Dowty Seal And Copper Washer

• Available in 1/4" to 2" BSP

Manifold Blocks / Subplates

34
Model No. Connection (BSP)

NG-06 1/4" to 3/8" & 1/2"

NG-10 1/4" to 3/8" & 1/2"

NG-20 3/4" & 1/2"

• Manifold block for any type custom built systems are available
• Any types of subplates for DC valve-Pr. Relif valve and flow control valve

In Line Check Valve

Model No. 02 03 04 06 08 010 011

35
 A 1/4" 3/8" 1/2" 3/4" 1" 1 1/4" 1 1/2"

Manifold Blocks / Subplates

Model No. Connection (BSP)

NG-06 1/4" to 3/8" & 1/2"

NG-10 1/4" to 3/8" & 1/2"

NG-20 3/4" & 1/2"

• Manifold block for any type custom built systems are available
• Any types of sub plates for DC valve-Pr. Relief valve and flow control valve

Inline Check Valve / Sub plate Type

36
 Model No. C-06 C-08 C-10 C-16 C-20 C-30

Connection BSP (F) 1/4" 3/8" 1/2" 3/4" 1" 1/2"

Max Flow (Ipm) 10 20 30 80 120 280

Pilot Operated Check Valve

Model No JT - 19 JT - 28 JT - 38 JT - 48 JT - 65

Pilot Operated Check

7 10 12 15 20
Valve

Suitable Motor HP 0.25 - 1 1-5 5 - 10 10 - 30 40 - 60

37
 • Material Steel hub and high graded plastic material sleeve

Flow Control Check Valve

DV-08 DV-10 DV-12 DV-16 DV-20 TCM TCM

Model No
DRV-08 DRV-10 DRV-12 DRV-16 DRV-20 06 10

Connection 
1/4" 3/8" 1/2" 3/4" 1" - -
BSP (F)

Max Flow
10 20 40 70 120 30 60
(Ipm)

• Integrated check valves allows reversed free flow rom outlet to inlet
• Max. Working pressure 350 bar
• Type: Threaded / Modular

SERVICES
 All hydraulic cylinders and parts are manufactured with the sole purpose to provide
effective service with low maintenance and a promise to deliver high productivity.
 Pipe Tech Hydraulic Manufacturing Company is well established and popular
organization consisting technicians an eye for detail with the years of experience we

38
 have created a customer base who trust us. And that has made us a company with
an excellent track record for best customer satisfaction

 They are engaged in offering a qualitative Labour Contractor Services to our valuable
clients. Under this service we provide labor on contract basis to various corporate
sectors.
 They offer this service in an excellent manner within a stipulated time-frame. The
labors are reliable and work according to the needs of the clients.
 Owing to its perfect execution and flawlessness, this service is widely admired by our
precious clients. Further, we provide this service as per the requirements of our
clients at affordable price.
 Never ever they have compromised the quality and service we provide to our
customer; we believe in customer satisfaction and providing prompt service with
competent pricing is our primary aim.
 Pipe Tech Hydraulic Manufacturing Company’s team is obliged to guide and assist
you, and they are available at your disposal to serve you as well as impart

knowledge about the product and suggest you the best ideas and market trends.
 The Pipe Tech Hydraulic Manufacturing Company is a fastest growing manufacturers
and supplier of hydraulic cylinders.

3.5. ORGANISATIONAL STRUCTURE

The Pipe Tech Hydraulic Manufacturing Company organizational chart typically
illustrates relations between people within an organization. Such relations might include
managers to sub-workers, directors to managing directors to various departments, and
so forth.

39
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3.6. SOWT ANALYSIS
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SWOT analysis is like a formula for identifying Strengths, Weaknesses, Opportunities,
and Threats that a market possesses for a company...
By using this method, we analyze where the company is falling short, where it is
excelling, and what needs to be worked upon.
To better understanding the SWOT analysis of Pipe Tech Hydraulic Manufacturing
Company, refer to the diagram below:

40
uSICH
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 CHAPTER NO 4
DATA ANALYSIS AND
INTERPRETATION

4.1. STATISTISCAL ANALYSIS

A company determines the selling price of its products after calculating of the fixed cost,
variable cost involved in productions and sales of the items produced by it. There are
three other important workings in the process viz. profit volume ratio, breakeven point
and margin of safety. Let us study how the companies examine all these.

42
Income statements of Pipe Tech Hydraulic Manufacturing Company (Month wise) for
the year ended 2021-2022 (Rs. in LAKHS).
The scale is shows below:

01/04/2021 TO 01/08/2021 TO 01/12/2021 TO 01/01/2022 TO

31/07/2021 30/11/2021 28/02/2022 31/03/2022
Quarter 1 Quarter 2 Quarter 3 Quarter 4

A. PROFIT VOLUME RATIO

Meaning:
Profit-volume ratio indicates the relationship between contribution and sales and is
usually expressed in percentage.

The ratio shows the amount of contribution per rupee of sales. Since, in the short-term,
fixed cost does not change, the profit-volume ratio also measure the rate of change of
profit due to change in the volume of sales. It is influenced by sales and variable or
marginal cost. If the sale price increases without a corresponding increase in marginal
cost, the contribution increases—and the profit-volume ratio improves. Similarly, if the
marginal cost is reduced with sale price remaining same— profit-volume ratio improves.

Advantages of P/V Ratio

 The advantages of profit-volume ratio are that it can be used to measure

profitability of each product, or group of them, separately so that the necessity for
continuance of such production can be examined. It may also be used to measure
the profitability of each production centre, process or operation.

 One fundamental property of profit-volume ratio is that it remains same at various

levels of operation and, thus, break-even point; required selling prices to maintain

43
 profits at various levels etc. can be easily calculated by suitable application of this
ratio.
 A high P/V ratio indicates high profitability so that a slight increase in volume,
without increase in fixed cost, would result in high profits. A low P/V ratio, on the
other hand, is a sign of low profitability so that efforts should be made to improve
P/V ratio.

Uses of P/V Ratio:

 It helps in the determination of Break-even-point [BEP = Fixed cost ÷ P/V ratio].
 It helps in the determination of profit at any volume of sales.
[Sales x P/V ratio = Contribution, Profit = Contribution – Fixed Cost].
 It helps in the determination of sales to earn a desired amount of profit.
[Sales Sales = Fixed Cost + Desired Profit P/V Ratio.
 It helps in determining the required selling price per unit Selling price per unit =
Variable cost (1 - P/V ratio).
 It helps in determining the variable cost for any volume of sales [Variable cost =
Sales x (1 - P/V ratio)].
 It helps in determining margin of safety [Margin of safety = Profit ÷ P/V ratio].

 CALCULATION OF P/V RATIO by using following formula

P/V Ratio = Contribution / Sales

TABLE 4.1

Particulars Quarter 1 Quarter 2 Quarter 3 Quarter 4

Sales 42,32,500 46,31,500 46,58,653 53,26,450

(-) Variable Cost 11,49,300 16,54,750 14,74,560 12,29,785

44
 Contribution 20,78,775 29,76,750 33,84,093 40,96,665

P/V Ratio 64.43% 64.42% 69.65% 76.91%

(CONTRIBUTION/SALES)

P/V Ratio
78.00%

76.00%

74.00%

72.00%

70.00%

Axis Title 68.00%

66.00%

64.00%

62.00%

60.00%

58.00%
Quarter 1 Quarter 2 Quarter 3 Quarter 4

Analysis of PV Ratio

The PVR (Profit Volume Ratio) of the company for six months of Quarter 1 64.43% and
then quite decreasing in the months Quarter 2 that are 64.42%.But In accordance with
the months Quarter 3 the PVR of the company is 69.65% and in the months 31st
March, 2014 we observe an increase in PVR in Quarter 4 that is 76.91% .But, in the

45
months that is Quarter 2 the PVR of the company are decreases 64.42 % respectively
And in the months t Quarter 4 the PVR of the company is highest 76.91%.

B. BREAK-EVEN PIONT

Generally, to calculate the breakeven point in business, fixed costs are divided by the
gross profit margin. This produces a dollar figure that a company needs to break even.

Advantages of a Breakeven Analysis

A breakeven analysis can help with many things, including:
 Finding missing expenses.
A breakeven analysis can help uncover expenses that you otherwise might not
have seen coming. Your financial commitments will be determined at the end of
a breakeven analysis, so there won’t be any surprises down the line.
 Limiting decisions based on emotions.
Making business decisions based on emotions is rarely a good idea, but it can be
hard to avoid. A breakeven analysis leaves you with hard facts, which is a better
viewpoint from which to make business decisions.
 Setting goals.
You will know exactly what kind of goals need to be met to make a profit after a
breakeven analysis. This helps you set goals and work toward them.
 Securing funding.
Often, you will need to use a breakeven analysis to secure funding and show
investors the plan for your business.
 Pricing appropriately.
A breakeven analysis will show you how to properly price your products from a
business standpoint.

46
 Uses of a Breakeven Analysis

 In accounting, the breakeven point is calculated by dividing the fixed costs of

production by the price per unit minus the variable costs of production.
 The breakeven point is the level of production at which the costs of production
equal the revenues for a product.
 In investing, the breakeven point is said to be achieved when the market price of an
asset is the same as its original cost.
 A breakeven analysis can help with finding missing expenses, limiting decisions
based on emotions, establishing goals, securing funding, and setting appropriate
prices.

 CALCULATION OF BREAK-EVEN POINT by using following formula

47
 BEP IN RUPEES = FIXED COST / P/V RATIO

BEP SALES IN % = FIXED COST/CONTRIBUTION

TABLE 4.2

Particulars Quarter 1 Quarter 2 Quarter 3 Quarter 4

Contribution 20,78,775 29,76,750 33,84,093 40,96,665
Fixed Cost 10,50,000 10,50,000 18,35,600 18,35,600
P/V Ratio 64.43% 64.42% 69.65% 76.91%
BEP Sales in Rs. 16,29,675 16,29,928 26,35,463 23,86,685
BEP Sales in % 50.51% 35.27% 54.25% 44.80%

BEP SALES %
60.00%

50.00%

40.00%
percentage

30.00%

20.00%

10.00%

0.00%
Quarter 1 Quarter 2 Quarter 3 Quarter 4

Analysis of Break - even Point

48
The BEP (Break-even Point) in accordance to sales is increasing in first Three months of
Quarter 1 is 50.51% and BEP is decreasing for another three months Quarter 2 35.27 %
respectively. But in the months of Quarter 3 major change in the BEP is observed to
54.24% and in the three months of Quarter 4 again it decreases to 44.80%.

C. MARGIN OF SAFETY

The margin of safety acts as a built-in cushion that allows a few losses to be incurred
but protects against major losses. Investors incorporate both qualitative and
quantitative techniques to determine a safety margin that will discount the price target.

Advantages of Margin of Safety

 The margin of safety is a buffer amount below which a business will no longer
remain profitable. As long as there is a buffer, the business will reap profits. It is
important as it helps the management in assessing the risk factor that the business
might face due to changes in sales.
 According to this financial ratio, management can make changes in their marketing
and promotional strategies to increase sales before it falls below the safety margin
ratio.
 Companies can also plan out their expenses wisely in order to prevent losses.
Overall, it is a risk management strategy.
 The margin of safety is an important factor while investing as this financial ratio
prevents most errors in analyst judgment or calculation. Businesses use the margin
of safety to analyze and expand their inventory.

Uses of Margin of Safety

There are mainly two applications of Margin Of Safety, which are as follow:
Budgeting:
The margin of safety is the main difference between the expected sales production and
the level by which a company’s sales could decline before being unprofitable in

49
budgeting and breakeven analysis. It alerts management to the potential for loss as the
business’s sales fluctuate, especially when a large portion of revenues is at risk of
declining or becoming unprofitable. A low percentage of margin of safety may cause a
corporation to minimize costs, but a high margin spread ensures that a company is
shielded from sales volatility.

Investing:

The difference between a stock’s intrinsic value and its current market price is known as
the margin of safety in investing. When you add up the whole discounted future income
earned, you get intrinsic value, which is the actual worth of any asset or the present
value of an item. Each investor utilizes a different method of calculating intrinsic value,
which may or may not be accurate, determining the intrinsic value or true worth of
investment is highly subjective.

 CALCULATION OF MARGIN OF SAFETY by using following formula

MARGIN OF SAFETY = TOTAL SALES – BREAK EVEN SALES

TABLE 3

Particulars Quarter 1 Quarter 2 Quarter 3 Quarter 4

Total Sales 42,32,500 46,31,500 46,58,653 53,26,450

Break Even Sales 16,29,675 16,29,928 26,35,463 23,86,685

Margin of Safety 26,00,000 30,01,575 20,23,190 29,39,765

Margin of Safety in % 61.42% 64.48% 43.42% 52.24%

50
 MARGIN OF SAFETY
70.00%

60.00%

50.00%
PERCENTAGE

40.00%

30.00%

20.00%

10.00%

0.00%
Quarter 1 Quarter 2 Quarter 3 Quarter 4

Analysis of Margin of Safety

A constant fluctuate in Margin of safety is observed from the Quarter 1 and Quarter 2.
A slight decrease is observed in the Quarter3 But again the Margin of safety tends to
increase in the three months Quarter 4 by 52.24% and in this month’s increase in
Margin of safety is measured due to decrease in Break-even point in accordance to
sales.

51
CHAPTER NO.6
FINDINGS AND
SUGGESTINS

52
5.1 FINDINGS

1. P/V RATIO

I observed an increase in PVR in Quarter 4 that is 76.91%. But, in the months that is
Quarter 2 the PVR of the company is decreased 64.42 % respectively and in the months
Quarter 4 the PVR of the company is highest 76.91%.

2. BREAK EVEN POINT

In the months of Quarter 3 there is a major change in the BEP is observed to 54.24% and
in the three months of Quarter 4 again it decreases to 44.80%.

3. MARGIN OF SAFETY

The Margin of safety tends to increase in the three months Quarter 4 by 52.24% and in
this month’s increase in Margin of safety is measured due to decrease in Break-even
point in accordance to sales.

53
4.2. OBSERVATION

Though the Margin of safety of the company is found to be fluctuating year by year, the
Profit Volume Ratio is also fluctuating. Hence, it can be said that the overall position of
the company is improving months by months with the increase in PV Ratio.

54
4.3. SUGGESTION

This is overall general suggestions and it may very useful for the companies to get
better the financial position and for the better performance.
1. From the above study of company should improve their workings and it should be
try to reduce fixed cost.
2. Company can get more contribution and high level of PVR to decreasing in variable
cost or increasing in sales.
3. On the other hand, company can also get more profitability to decreasing in fixed
cost.
4. This is overall general suggestions and it may very useful for the companies to get
better the financial position and for the better performance.
5. The company should try to increase the production so as to get economies of large-
scale production. It will assist in raising the rate of return on capital employed.
6. In order to increase the profitability of the companies, it is suggested to control the
cost of goods sold and operating expenses.
7. The management should try to adopt cost reduction techniques in their companies
to get over this critical situation.

55
CHAPTER NO. 6 CONCLUSIONS

4.1. BIBLIOGRAPHY

RESEARCH PAPERS

1. Robert E Hall “MARGINAL COSTING AS AN ESSENTIAL TOOL FOR DECISION MAKING

IN A MANUFACTURING COMPANY FOR DECISION MAKING IN A MANUFACTURING
COMPANY” National Bureau of Economic Research, ISSN: 24574, Volume 5(2), May
2018 .
2. Shri. S. G. Vahora. “The international diffusion of new management accounting
practices: the case of India,” Journal of International Accounting, Auditing &
Taxation, Vol. 10, pp.85-109
3. International Journal of Advanced Research in Management and Social Sciences
ISSN: 2278-6236 Vol. 2 | No. 4 | April 2013 www.garph.co.uk IJARMSS | 58 IMPACT
OF MARGINAL COSTING AND LEVERAGES FOR CEMENT INDUSTRIES Dr. L. Leo
Franklin* Dr. K. Uma**
4. V.K. Saxena & C.D. Vashist : Cost and Management Accounting; Sultan Chand &
Sons, 23, Daryaganj New Delhi -110 002.
5. Swamidass, M. P. (Ed.). (2000). Encyclopedia of Production and Manufacturing
Management.
6. A Study on Marginal Costing in Tata Steel Ltd. - Neeraj Kumar Gupta - IJFMR Volume
5, Issue 1, January-February 2023. DOI 10.36948/ijfmr.2023.v05i01.1662

56
WEB RESOURCES

1. Annual Report of Pipe Tech Hydraulic Manufacturing Company. From their website
www.pipetechhydraulic.com
2. https://www.grossarchive.com/project/accounting/3378-marginal-costing-as-an-
essential-tool-for-decision-making-in-a-manufacturing-company-for-decision-
making-in-a-manufacturing-companya-case-study-of-anamco-enugu
3. https://www.wallstreetmojo.com/marginal-costing/

BOOKS

1. Techniques of Cost Accounting (Cost and Work Accounting-III)

By  Nirali Prakashan Author : Dr. Suhas Mahajan,Dr. Mahesh Kulkarni
2. MARGINAL COSTING AND BREAK-EVEN ANALYSIS by Chandra Shekhar (Author) In
his book, the subject matter is expressed in clear way. Kindle Edition
3. MARGINAL COSTING by E. Harris  (Author)
This book describes cost behavior and its relationship to business decisions.

ART ICALES

1. Marginal costing: cost budgeting and cost variance analysis Management Accounting
Research Volume 8, Issue 3, September 1997, Pages 299-323  Article by osef 
Kloock, Ulf Schiller
2. JOURNAL ARTICLE The Marginal Cost ControversyR. H. CoaseEconomicaNew Series,
Vol. 13, No. 51 (Aug., 1946), pp. 169-182 (14 pages) Published By: Wiley
3. Brierley, J.A. (2013)The uses of product costs in decision making in British
manufacturing industry. International Journal of Managerial and Financial
Accounting, 5 (3). pp. 294-309. ISSN 1753-6715

57
58