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Good day sir? Please sir, can u simplify Absorption Costing and Marginal Costing Techniques for me, been trying to Understand it… Thank u
I assume that you were exempt from Paper F2? I ask because absorption and marginal costing are tested in detail in F2.
Paper F5 expects a basic understanding of what is meant, but you are not expected to do full absorption and marginal costing questions in F5. The extent to which it is needed is covered in full in my F5 lectures.
The lectures are a complete free course for F5 and cover everything needed to be able to pass the exam well.If you really have no understanding at all of marginal and absorption costing, then do watch my free Paper F2 lectures on this.
Essentially, marginal costing only includes variable production costs when calculating the cost per unit, whereas absorption costing includes also fixed production costs. To explain more would mean me typing out the whole of my lectures 🙂
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