Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › absorption and margin
- This topic has 4 replies, 2 voices, and was last updated 8 years ago by John Moffat.
- AuthorPosts
- January 26, 2016 at 6:29 am #297915
hi sir
in exam section B
question give
selling price 20
fix overhead 5
variable overhead 5
profit 10inventory value in same about 500unit
margin
>sale volume contribution $1000
>standard contribution on actual sales $1500
> variable cost volume$3000
>fix overhead expenditure$4000
>actual profit$7000need to find absorption
sale volume contribution
standard contribution actual sales
variable cost volume
fix overhead expenditure
actual profithow to find up??? is it use inventory unit x $ and ignore margin??? confuse><
January 26, 2016 at 7:57 am #297936What do you mean by “how to find up???” ?
January 27, 2016 at 8:49 am #298091how to calculate the absorption amount?
January 29, 2016 at 5:43 am #298404hi sir how to calculate the absorption sales volume? use inventory unit 500×10′??need to minus margin sales volume contribution or not?
January 29, 2016 at 9:03 am #298437I am sorry, but what you are asking does not make sense.
Absorption sales volume does not mean anything.
It seems as though this is a variance question, but you have made no mention of variances when you typed out the question.
I suggest that you watch our free lectures – they are a complete course for Paper F2 and cover everything needed to be able to pass the exam well.
- AuthorPosts
- The topic ‘absorption and margin’ is closed to new replies.