Sales variancies -BLOCK CO (JUNE 2013 EXAM )

This topic has 2 replies, 2 voices, and was last updated 9 years ago by John Moffat.

Viewing 3 posts - 1 through 3 (of 3 total)

Author
Posts
February 4, 2017 at 7:15 pm #371068
mika84
Member
- Topics: 99
- Replies: 149
Dear Sir,
could you help me to clarify the following please.
In this problem they give Fixed production overhead and in workings they are deducted from sales price to arrive at Standard profit margin. This figure is used to find variances. But I remember in some short exercises they used standard contribution. So, should we always deduct fixed overhead?
February 5, 2017 at 1:22 am #371082
mika84
Member
- Topics: 99
- Replies: 149
In Valet Co (JUNE 2014 exam)
Std. contribution us used rather than std profit…
February 5, 2017 at 9:06 am #371117
John Moffat
Keymaster
- Topics: 57
- Replies: 54836
It depends whether they are using marginal or absorption costing, which is clear from the wording of the question.
You must watch my free lectures – I am not going to simply type them all out here.
Author
Posts

Viewing 3 posts - 1 through 3 (of 3 total)

The topic ‘Sales variancies -BLOCK CO (JUNE 2013 EXAM )’ is closed to new replies.