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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Absorption costing
A B C P Q
Cost 3000$ 4000$ 2000$ 2500$ 2700$
% of P 20% 30% 25% —– 25%
% of Q 25% 25% 30% 20% ——-
I want to know for which reason in example they calculate re apportionment of P department (% of P) firstly? not Q?. mention that P and Q ( service department) others production departments.
It does not matter which you re-apportion first – you will end up with the same answer.
(and I do explain this in the free lectures on allocation, apportionment and absorption).