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absorption and marginal costing

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › absorption and marginal costing

  • This topic has 1 reply, 2 voices, and was last updated 2 years ago by AvatarJohn Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • December 9, 2023 at 4:08 pm #696502
    AvatarAnonymous
    Inactive
    • Topics: 7
    • Replies: 3
    • ☆

    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

    December 10, 2023 at 10:01 am #696541
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54839
    • ☆☆☆☆☆

    You have posted this question twice. I have answered your other posting of it.

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    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • The topic ‘absorption and marginal costing’ is closed to new replies.

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