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marginal profit comapre absorption profit

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › marginal profit comapre absorption profit

  • This topic has 1 reply, 2 voices, and was last updated 10 years ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
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  • April 1, 2015 at 5:28 pm #239847
    Molly Sum
    Participant
    • Topics: 39
    • Replies: 53
    • ☆☆

    hi sir ,
    comparison of profits for marginal costing against absorption costing the two difference methods it is because of the inventory, but may I ask the profit not the same whether is looking for how much for the difference only ?

    thank you

    April 1, 2015 at 11:37 pm #239864
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54659
    • ☆☆☆☆☆

    I do not quite understand what you are asking.

    The difference in profit will always be the change in inventory over the period multiplied by the fixed overheads per unit.

    The free lectures on marginal and absorption costing should help you.

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