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Why is the absorption costing profit lower than marginal costing profit when the number of units in inventory reduce during the period?
You asked this as a comment on a lecture, and I have answered you there.
(And why a second post with ‘??’ ? 🙂 If it was because you expected an instant answer then you will not get instant answers. We answer within 24 hours, but we cannot possible sit in front of a computer for 24 hours a day (especially since you asked your question in the middle of the night in my time zone 🙂 )
Of course he has been answered!
If you read my reply properly you will see that he asked the same question in two places – I answered one and so there is no point in my answering it twice!
(If you are interested in the answer then I suggest that you watch our free lectures on absorption and marginal costing because it is explained in full there – I am not going to type out the whole lecture here 🙂
Our free lectures are a complete course for Paper F2 and cover everything needed to be able to pass the exam well.)
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