• 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

20% off ACCA & CIMA Books

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

help?

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › help?

  • This topic has 1 reply, 2 voices, and was last updated 3 years ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • January 2, 2022 at 2:50 pm #645191
    AlinaaF
    Participant
    • Topics: 31
    • Replies: 17
    • ☆

    What does it mean that in marginal costing fixed cost is treated as period cost so it is charged in full to the P&L accounting period in which they incurred?

    However, in absorption costing fixed cost is treated as production cost so it is charged as cost of goods sold?

    Secondly, I want to ask that:
    Raw material / WIP are both part of total production costs but they will not be in opening inventory and closing inventory is actually Finished goods.

    I am confused here!

    January 2, 2022 at 4:19 pm #645196
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54701
    • ☆☆☆☆☆

    With marginal costing the whole of the fixed overhead for the period is charged in that period.

    With absorption costing the fixed overheads are absorbed into the units produced, and only those sold in the period are charged in the period. The rest is carried forward in the value of the closing inventory.

    I do explain this in my lectures.

    Inventories of raw materials and WIP will be accounted for in calculating the cost of materials used in production. Again, I illustrate this in my lectures on budgeting.

    The lectures are a complete free course for Paper MA and cover everything needed to be able to pass the exam well.

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 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

  • John Moffat on Relevant Cash Flows for DCF Relevant Costs (example 1) – ACCA Financial Management (FM)
  • John Moffat on Accounting for Management – ACCA Management Accounting (MA)
  • Hsaini on Accounting for Management – ACCA Management Accounting (MA)
  • kennedyavege@2023 on Relevant Cash Flows for DCF Relevant Costs (example 1) – ACCA Financial Management (FM)
  • John Moffat on Relevant Cash Flows for DCF Relevant Costs (example 1) – ACCA Financial Management (FM)

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