MARGINAL COSTING
Marginal costing is generally a decision making, you have to use marginal costing when you want to decide whether you want to fulfil the next order or what my actual profit on the additional order. It is generally not used for accounting purpose but a decision making process. And it includes only variable expenses.
STANDARD COSTING
Standard costing means where your manufacturing process is very standardised and there is the historical standard cost available with you and from that whatever variance is available, it is considered to be abnormal profit or loss, and you don’t want to load that to your inventory so than you have to use standard costing because that will allow to track whether you are meeting your cost or not.
ABSORBPTION COSTING
In this type of costing the variable cost and fixed cost are considered and we will allocate the fixed cost directly attributable to inventory, without seeing that whether my fixed cost is unjustified or justified.
