ABSTRACT
MR. J. A. Reece appears to exaggerate differences between Marginal and Conventional Costing; for in fact the aims of both are the same and the methods of accounting are the same except in the treatment of fixed expenses. Marginal Costing implies the division of the expenses into fixed and variable and the stripping of the fixed expenses from the 'cost' of the article. In the advantages of Marginal Costing, Mr. Reece says nothing of the advantages of the exclusion of fixed charges, which in conventional costing tend to swamp the costs and smother serious errors. On the other hand, in disadvantage, he says that it does not provide for the control of men and materials. The change of method of accounting is by no means disturbing or disruptive. There is, however, a complete change in the methods of price control, and recovery of fixed expenses.
