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Costing

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Costing

  • This topic has 1 reply, 2 voices, and was last updated 6 years ago by John Moffat.
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  • Author
    Posts
  • September 26, 2018 at 5:06 pm #475799
    xiiaolih
    Member
    • Topics: 65
    • Replies: 42
    • ☆☆

    Hi Sir, May I know
    1. We need to do allocation, apportionment and absoprtion
    for production overhead ONLY
    OR
    for production and non-production overhead?

    2. Production cost centre will incur what kind of costs? is it Direct material, direct labour and direct expense only?

    3. Production overhead is the cost incurred by production cost centre or service cost centre? What are the examples of production overheads?

    Thanks you so much

    September 27, 2018 at 8:59 am #475847
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54702
    • ☆☆☆☆☆

    This is not really relevant for Paper PM – it is examined in Paper MA (F2) and is not asked again in Paper PM.

    1. For production overheads only

    2. All costs incurred in the cost centre – including production overheads

    3. This is explained (with examples) in my free lectures for Paper MA.

    Again, this is not really a Paper PM topic. My free lectures for Paper PM cover everything needed to be able to pass the exam well (including revision of relevant topics from Paper MA(F2).)

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