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Management Accounting Absorption and Marginal Costing

This topic has 1 reply, 2 voices, and was last updated 6 months ago by John Moffat.

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September 5, 2025 at 6:39 pm #719890
amiomannn
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When we have variable selling overheads for marginal costing do we find the amount by applying it on units sold or on units produced and do we add it to the production cost or substract at the end like we do with absorption costing.
September 6, 2025 at 10:26 am #719915
John Moffat
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It is not so much that they are added to the production cost but that they are subtracted from the selling price (as are also the production costs) in arriving at the contribution.
I do illustrate this in my free lectures on marginal and absorption costing.
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