- This topic has 1 reply, 2 voices, and was last updated 1 year ago by .
Viewing 2 posts - 1 through 2 (of 2 total)
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.
OpenTuition recommends the new interactive BPP books for September 2025 exams.
Get your discount code >>
Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › MA FA. Chapter 10, Quiz, Question 5
Could you please explain the calculations and the general meaning of the question
I assume that you have watched my free lectures, in which case you will know that the only difference ever between the marginal and the absorption profits is the change in the inventory multiplied by the fixed overhead absorption rate.
Given that they produced 2,000 units more than they sold, the inventory must have increased by 2,000 units. The absorption rate is $63,000/14,000 = $4.50 per unit.
Therefore the profits are different by 2,000 x $4.50 = $9,000.