Overhead Absoption Rates

Rune
Rune Registered Posts: 91 ? ? ?
Can someone please explain these to me I am really confused. Marginal costing? contributions? Help!!???:huh:

Comments

  • SandyHood
    SandyHood Registered, Moderator Posts: 2,034
    Product costs include absorbed overheads in absorption costing.

    Under marginal costing all fixed costs are treated as period costs and are not included in the cvost of products

    So, do not absorb overheads into product cost when doing marginal costing.
    Sandy
    [email protected]
    www.sandyhood.com
  • Rune
    Rune Registered Posts: 91 ? ? ?
    Thanks
  • SandyHood
    SandyHood Registered, Moderator Posts: 2,034
    I've revived this thread following a request from jewels
    Do you have an easy way of describing the difference between Marginal and Absorption Costing?

    Please feel free to add to the question if my earlier response about product costs is not enough.
    Sandy
    [email protected]
    www.sandyhood.com
  • jewels.p
    jewels.p Registered Posts: 1,774
    Thanks for that Sandy. :thumbup1: Did a search before I asked you but didnt find that one.

    Julie:001_smile:
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