Overhead Absoption Rates

Rune

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

SandyHood

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.

Rune

Thanks

SandyHood

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.

jewels.p

Thanks for that Sandy. :thumbup1: Did a search before I asked you but didnt find that one.

Julie:001_smile: