Hi, please can you help me with this query.
Regarding the below formula, I thought MC don’t include fixed overheads? In that case why are we adding it to opening inventory?
AC Profit
add: fixed overhead in opening inventory
less: fixed overhead in closing inventory
MC profit
CIMA Forums
P1 formula advice
When ur closing Inventory > Opening Inventory then Ur AcP is greater then McP when ur Opening Inventory > Closing inventory then ur MCP is Greater then AcP
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