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hi,
could you expain to me why there is no clear relationship between profit and sales volume , on BPP textbook, it states that as sales volume rises, the total profit will rise by the sume of the gross profit per unit plus the amount of overhead absorbed per unit, I do not understand this statement very much
thank youIt is a strange way for BPP to write it.
All they mean is that as sales volume rises, the gross profit will rise by the gross profit per unit before fixed productions costs (because fixed costs will not be affected by changes in volume – only the sales revenue and the variable production costs.)
(I assume that you have watched my lectures on marginal and absorption costing?)
Hi John …. i have an unrelated question from this post. its on interlocking system.
In an interlocking system have i noted the correct entries:
purchase;
material control dr
cost control crsales
cost control dr
material control cr——————————
cost control account is in the cost ledger account
material control account is also in the cost ledger accountare the above correct?
my ma1 exam is on the 21st again…..please help
regards
mansoor
Mansoor: Please post this in the MA1 forum – not here.
I am not the tutor for MA1 and it is years and years since I have taught anything about the interlocking system (it is not in the syllabus for the ACCA Qualification exams).
ok.. thank u replying .. it was due to ur help that i got a 94 on fa1..:) .. lets hope ur counterpart in ma1 is as good..:)
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