statement

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Hi
Could anyone explain what goes in the Marginal and absorption costing statements please? I am doing question 1.4 in the osborne workbook and it is confusing!

thanks

Comments

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

    I agree, its a very badly worded question. My interpretation, based on the answer to the Osborne Tutorial question 1.3 is that what they're looking for is similar in format to a profit-and-loss account. Show the sales, less cost of sales, being careful to get the closing stock figures right. Also under marginal costing, 'contribution' is similar to 'gross profit'.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:statement

    Are you looking at Abmar Ltd?

    10,000 produced cost £140,000 so the cost of one = £14.00.

    I have put the layouts onto excel so you can see how these should be presented.

    email me for these as an attachment making this your subject line:
    Q1.4 Albar Ltd
    and sending your email to:
    sandy.hood@chichester.ac.uk

    I have an out of office reply set up which will automatically send an email with the excel spreadsheet attachment provided you have used the specified subject line
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:statement

    Hi Thank you for your help! hopefully I can understand it better now

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