Flexi Budgets PCR

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
In section 2 of PCR. When preparing a flexi budget under marginal costing, if the original budget contains cost of sales do you just ignore this?

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Flexi Budgets PCR

    You just work out the variable costs of the goods that were actually sold, taking out any closing stock. Obviously this leaves you with contribution when deducted from turnover, then your fixed overheads come off after that.

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