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Marginal costing is the technique that includes direct expenses . material, labour, direct and variable overheads to production following variable cost. Marginal costing is easy to use, enabling the business to ignore irrelevant cost like fixed cost, notional cost, sunk cost and committed cost. This contribution then provides a more reliable measure for decision making, it displays perfect impact on profit due to fluctuation in sales. Not under and over absorption problem faced here. These techniques help management to take short-run tactical decision also.