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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › PROFIT DIFFERENCE
25,000 units of a company’s single product were manufactured in a period during which 28,000 units were sold. Unit costs of the product were
Direct costs $16.20
Fixed production overheads $7.60
Fixed non-production overheads$2.90
What is the difference between the absorption costing profit and the marginal costing profit for the period?
I wana know do we include fixed non production overheads or not in valuing the defference??
No. The difference is only the production overheads multiplied by the change in the inventory.