Comparative Analysis Of The Effect Of Marginal Costing And Absorption Costing Techniques On The Performance Of Manufacturing Companies In Nigeria (A Case Study Of Pz Nigeria Limited Aba)

ABSTRACT

 This project focuses on the comparative analysis of the effect of marginal costing and absorption costing techniques on the performance of manufacturing company in Nigeria. The research was carried out to ascertain the effect of the application marginal and absorption costing techniques on the company's production, to estimate and compare profit of firms that adopt marginal and absorption costing technique, and also to determine the factors that influence production under marginal and absorption cost accounting. The data collected for the study were analyzed, tabulated and presented using Pearson's Product Moment Correlation. The result of the analysis shows that using absorption costing technique increases the profit margin of the company, while marginal costing technique does not increase the profit margin of the company. And marginal costing technique reduces the tax paid by the company, while absorption costing technique does not reduce the tax paid by the company.