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I would like to ask the under/absorbed fixed production overhead is after gross profit or before gross profit for the latest AC format??
2. the variable non production cost is before gross profit or after gross profit for the latest AC format?
Thanks
The adjustment for over/under absorption is before gross profit, variable non-prodycion costs are after gross profit.
However, I don’t know what you mean by ‘latest format’ – there is no standard format. This is management accounting, not financial accounting, and management do whatever they find most useful.
Also, in the exam you cannot possibly be asked to produce a full profit statement using either absorption or marginal costing, but you are obviously expected to understand them.All of this is explained in my free lectures. The lectures are a complete free course for Paper MA (F2) and cover everything needed to be able to pass the exam well.
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