Advantages of Absorption Costing:

1. Provides a more accurate cost per unit as all costs, including fixed costs, are absorbed.
2. Ensures compliance with accounting standards for financial reporting.

Disadvantages of Absorption Costing:

1. Can be misleading for decision-making, as it allocates fixed costs to unit costs.
2. May encourage overproduction to absorb fixed costs.

Advantages of Marginal Costing:

1. Useful for decision-making as it focuses on variable costs and contribution margin.
2. Simplifies cost control by excluding fixed overheads in unit cost calculations.

Disadvantages of Marginal Costing:

1. Does not conform with external financial reporting standards.
2. Ignores the importance of fixed costs in total cost structure.