ecr

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:31AM in AAT student discussion
Hi is anyone struggling with costing? i just done my simulation today and i couldnt remember some of the formulas anyone got any tips. Dont think i did very well feeling pretty fed up and depressed. is there anyway i could fail it. :(

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:ecr

    What sort of tips are you after?

    How about this tip:

    The main difference between marginal and absorption costing is often misunderstood.

    In absorption costing fixed manaufacturing overheads are absorbed into products and in marginal costing they are kept seperate as a period cost.

    The final net profit in either method will be the same EXCEPT when there are closing stocks: because some fixed costs have been absorbed into closing stock under absorption costing profit can be potentially higher (because closing stocks are deducted in arriving at the cost of production for the period).

    Probably not very helpful to you give us more clues!

    PS Youll be alright you can do the costing exams without really understanding it to well! Worry about really understanding it if you get a job in it.

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