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Gross profit

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Gross profit

  • This topic has 3 replies, 2 voices, and was last updated 3 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
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  • February 23, 2020 at 10:28 pm #562864
    shreeya2011
    Member
    • Topics: 9
    • Replies: 11
    • ☆

    is fixed production overhead expenditure and fixed production overhead volume part of the costs of goods sold? so I know when I do the exam if I need to add or minus (due to the variances) from a budgeted gross profit.

    February 24, 2020 at 7:04 am #562885
    John Moffat
    Keymaster
    • Topics: 56
    • Replies: 53348
    • ☆☆☆☆☆

    You add or subtract depending on whether the variances are favourable or adverse.

    This is all explained in my free lectures on variance analysis.

    February 26, 2020 at 11:57 am #563210
    shreeya2011
    Member
    • Topics: 9
    • Replies: 11
    • ☆

    so if I have a budgeted gross profit of 10,000 and I have fixed production overhead expenditure of 2000 favourable and fixed production overhead volume of 1500 adverse. how would I calculate this. would this be included to calculate gross profit or net profit?

    February 27, 2020 at 3:39 pm #563328
    John Moffat
    Keymaster
    • Topics: 56
    • Replies: 53348
    • ☆☆☆☆☆

    You add the favourable variance and subtract the adverse variance.

    It would give the gross profit since the are production overheads.

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