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When calculating Sales mix profit variance and Sales quantity profit variance, should I include rent, depreciation costs and advertising costs when calculating standard profit?
It seems that you are asking about a question in todays exam.
I cannot comment on it until I have seen the whole question, and it has not yet been published by the ACCA.
Normally, the standard cost will only include production costs – so rent of the factory and depreciation of factory machines would be included, but advertising costs would not be.
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