lgarside Registered Posts: 122 Dedicated contributor 🦉
Hello does anyone else struggle with costing?!?!?!

Can you tell me in absorption costing is it;

Direct labour
Direct Materials
other direct variable costs (production costs)

then Fixed overheads (production costs)

and in marginal costing;

direct labour
direct materials
other direct variable costs (production costs)

In the above examples are direct labour and mats classified as variable production costs"or are production costs different to direct labour and materials? The book seems to confuse these terms.

Am I right in thinking in marginal costing variable production costs are included in the unit/batch price?
Privacy Policy