marginal profit comapre absorption profit

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April 1, 2015 at 5:28 pm #239847
Molly Sum
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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
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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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