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absorption and marginal costing

Former userFormer user2y ago
A company manufactures and sells a single product. In two consecutive months the following levels of production and sales (in units) occurred: Month 1 Month 2 Sales 2,600 3,400 Production 2,700 3,200 Profits or losses have been calculated for each month using both absorption and marginal costing principles. 4. Which of the following combinations of profit/(loss) for the two months is consistent with the above data? Absorption costing Marginal costing Month 1 Month 2 Month 1 Month 2 $ $ $ $ A. 200 3,400 (400) 2,200 B. (400) 3,400 200 2,200 C. 200 2,200 (400) 3,400 D. (400) 2,200 200 3,400 in what basis do they calculate absorbtion costing> marginal costing in month 1 and marginal is >absorption costing in month 2 so how do we find the answer as option c 200 -2200 and (400)-3400 how to calculate this
John MoffatJohn MoffatTutor2y ago#1
You have posted this question twice. I have answered your other posting of it.
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