F2 Specimen Exam

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November 15, 2015 at 7:32 pm #282691
sburge
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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.
November 15, 2015 at 7:53 pm #282699
John Moffat
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I 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.
November 15, 2015 at 8:07 pm #282703
sburge
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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
November 16, 2015 at 7:06 am #282737
John Moffat
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It 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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