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Absorption costing statement

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Absorption costing statement

  • This topic has 1 reply, 2 voices, and was last updated 3 years ago by AvatarJohn Moffat.
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  • October 27, 2022 at 9:09 am #670103
    Avatarteshwar
    Participant
    • Topics: 47
    • Replies: 30
    • ☆☆

    Sir, For absorption Costing Statement do we less under absorbed and add over absorbed

    October 27, 2022 at 5:07 pm #670137
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54839
    • ☆☆☆☆☆

    If you have under-absorbed then either add the amount to the costs or subtract the amount from the profit. (The end result is the same).
    It is obviously the opposite if we have over-absorbed.

    Appreciate however than you cannot be asked to produce the statement in the exam.

    Have you watched my free lectures on this?

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