hi
i have just one question about the Specimen Exam Paper that is in the revision kit:
Question 4, includes the $63,000 for the fixed production costs, but why are the $12,000 fixed selling costs ignored? is this to do with only production costs being absorbed into the 14000 units produced?
many thanks.
Ask the Tutor ACCA MA
F2 Specimen Exam
10y ago#1I am sorry, but I have absolutely no idea which revision kit you are using - there are many publishers who produce revision kits.
Without therefore being able to see the question I cannot help you.
sorry i should have said on the this site the Live Revision kit – Lectures based on the F2 Past ACCA exams
or posted the link:
https://opentuition.com/acca/f2/acca-f2-specimen-exam-section-a-lecture-1/
Its question 4
10y ago#3It is the fixed overheads in the inventory valuation that create the difference between marginal and absorption profits.
When valuing inventory we only ever take into account costs of production - never selling or admin costs.
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