- This topic has 1 reply, 2 voices, and was last updated 9 months ago by .
Viewing 2 posts - 1 through 2 (of 2 total)
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.
PQ Awards Nominations
Please help us to win one of the PQ Magazine awards and send in the voting form >>
You can nominate us in any or all of the following categories: Online College of the Year, Study Resource of the Year, Private Sector Lecturer of the Year, and Accountancy Personality of the Year.
Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>
Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Marginal costing
In marginal and absorbtion costing do we deduct selling and adminstration price from the profit or is it included with variable overhead cost and we get the profit?
In absorption costing they are subtracted from the gross profit to get the net profit.
In marginal costing, the variable selling costs are subtracted in arriving at the contribution, any fixed costs are subtracted from the contribution to get the profit.
I illustrate both in my free lectures on marginal and absorption costing.