• 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 March and June 2025 exams.
Get your discount code >>

MA FA. Chapter 10, Quiz, Question 5

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › MA FA. Chapter 10, Quiz, Question 5

  • This topic has 1 reply, 2 voices, and was last updated 1 year ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • February 19, 2024 at 10:35 am #700670
    Dilshod1999
    Participant
    • Topics: 1
    • Replies: 0
    • ☆

    Could you please explain the calculations and the general meaning of the question

    February 20, 2024 at 7:33 am #700707
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54660
    • ☆☆☆☆☆

    I assume that you have watched my free lectures, in which case you will know that the only difference ever between the marginal and the absorption profits is the change in the inventory multiplied by the fixed overhead absorption rate.

    Given that they produced 2,000 units more than they sold, the inventory must have increased by 2,000 units. The absorption rate is $63,000/14,000 = $4.50 per unit.

    Therefore the profits are different by 2,000 x $4.50 = $9,000.

  • 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

  • Ken Garrett on Project management – ACCA Strategic Business Leader (SBL)
  • Kim Smith on IASB Conceptual Framework – Introduction – ACCA Financial Reporting (FR)
  • Farhaan on Project management – ACCA Strategic Business Leader (SBL)
  • Ken Garrett on Professionalism, ethical codes and the public interest – ACCA Strategic Business Leader (SBL)
  • thienan0110 on Interest rate risk management (1) Part 5 – ACCA (AFM) lectures

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