Absorption costing and marginal costing

Absorption costing is a traditional costing method. In absorption costing fixed and variable cost both are considered. In this method of costing manufactured product plays a vital role in identification of costs. In seasonal business absorption costing may show odd result. It also may inspired the rejection of a profitable business. On the other hand in marginal costing techniques only variable cost are considered. In marginal costing techniques fixed cost are charged with the revenue of the period. Hece the difference between absorption and marginal costing is found in recovery of fixed overheads and in valuation in inventories. In absorption costing techniques the recovery pf overheads are considered it it is fixed or variable overheads. Both of these  overhead are considers. On the other hand in marginal costing techniques only variable overhead is considered, but the fixed overhead is count in frofit and loss account. Work in progress and finished goods are consider as work cost and total cost in absorption techniques of costing. On the other hand  only variable cost are consider to account work in 0rogress.