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How can it be – it was removed from the syllabus years ago 🙂
I don’t know where you are studying from, but I suggest that you watch my free lectures. They are up-to-date for the current syllabus and are a complete free course for Paper F2 covering everything needed to be able to pass the exam well.
Hello Sir.
A company uses absorption costing and makes and sells one product. In the last month budgeted overheads totalled $60000. Budgeted production was 15000 units and budgeted sales were 14000 units. The company now decides to apply marginal costing principles for last month. What effect will this have on profits?You must have answers in the same book in which you found the question, so in future please say what it is in the answer that you are not clear about and then I will help you.
If you have watched my free lectures then you will know that the difference between the marginal and absorption profits is always the change in inventory multiplied by the fixed overheads per unit.
The fixed overheads are $4 per unit, and the inventory changes by 1,000 units.
Do watch the free lectures – they are a complete free course for Paper F2 and cover everything needed to be able to pass the exam well.
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