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Cost classification

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Cost classification

  • This topic has 1 reply, 2 voices, and was last updated 9 years ago by John Moffat.
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  • December 16, 2015 at 1:08 pm #291985
    tharuka111
    Member
    • Topics: 9
    • Replies: 5
    • ☆

    Dear John sir,
    Is The cost of research and development department a production overhead?if so is it included in the cost of a cost unit?

    December 16, 2015 at 4:51 pm #292016
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54657
    • ☆☆☆☆☆

    It depends on the question.

    In normal Paper F2 standard costing it will not be included in the costings.

    In life-cycle costing it will be included, but you cannot be asked calculation questions on life-cycle costing in Paper F2 (you can only be expected to know the idea behind it (which is explained in our free lecture notes). Calculations are only asked in Paper F5.

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