• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

June 2025 ACCA Exams

How was your exam? Comments & Instant poll >>

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for September 2025 exams.
Get your discount code >>

Cost of sales

Forums › Ask CIMA Tutor Forums › Ask CIMA P1 Tutor Forums › Cost of sales

  • This topic has 3 replies, 3 voices, and was last updated 7 years ago by Cath.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • March 10, 2018 at 8:04 pm #442108
    peronapilar
    Member
    • Topics: 6
    • Replies: 7
    • ☆

    Hi

    I have maybe a silly question, but i have seen 2 different calculation in my book for cost of sales (full absorption cost and marginal cost)

    In full absortion cost, the Variable cost was calculated over the UNITS SOLD. But in marginal cost, over the UNITS PRODUCED

    Is this difference because we are calculating full and then marginal? is a mistake in the book? Going mad with this silly thing

    THANKS IN ADVANCE!

    March 11, 2018 at 6:00 pm #442227
    Cath
    Participant
    • Topics: 0
    • Replies: 447
    • ☆☆☆

    Hello, Thank you for your question.

    The difference between absorption and marginal costing is the treatment of overheads..

    The difference when to calculate absorption costing over units sold (rather than over goods produced) is when we are finding the costs of goods SOLD on the income statement (excuse the capital letters we have no bold or underline function!).

    When we calculate the full product cost per unit under absorption costing then we share the total overhead cost over all units PRODUCED in the period.

    For marginal costing – the costs will just be direct materials and direct labour & other variable costs (variable overheads) and the same unit value will arise whether amounts are sold or produced because the direct costs equal variable costs only.

    Hope that helps
    Cath

    May 15, 2018 at 11:05 am #452055
    molefekgomotso
    Participant
    • Topics: 0
    • Replies: 1
    • ☆

    other variable costs (variable overheads), does this have to include selling and distribution cost?

    May 20, 2018 at 4:35 pm #452999
    Cath
    Participant
    • Topics: 0
    • Replies: 447
    • ☆☆☆

    Hi,
    Yes if the selling & distribution costs are truly variable in behaviour – then they can be included in variable overheads.
    Kind Regards
    Cath

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • poojam on Objective of financial reporting – ACCA Financial Reporting (FR)
  • mm3677 on IAS 16 Accounting for a revaluation – CIMA F1 Financial Reporting
  • Anastesia123 on MA Chapter 1 Questions Accounting for Management
  • John Moffat on MA Chapter 26 Questions Variance Analysis
  • acowtant on Changes in group structure – examples – ACCA SBR lectures

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in