quick question

is it right to say that - under absorption is charged to the p&l as a loss?

Comments

  • mally
    mally Registered Posts: 14 Regular contributor ⭐ ? ⭐
    Yes, thats right
  • wolfe
    wolfe Registered Posts: 121 ? ? ?
    i would say that under absorption is charged the p&l as a further expense.
  • CJC77
    CJC77 Registered Posts: 62 ? ? ?
    is it right to say that - under absorption is charged to the p&l as a loss?


    I personally would always say both words in a particular order out loud-
    i.e under / over rather than over / under, it makes it easier for me to then remeber which side of the 'T' account it would go on...

    debit (on the left) / credit (on the right)
    under (on the left) / over (on the right)

    The next bit, well you just have to say it like a mantra till it sticks in your head as I haven't found any novel methods of remembering it!

    under - reduces profit by increasing costs
    over - increases profit by decreasing costs

    As Roy Walker would say.....'say what you see' :laugh:
  • reddwarf
    reddwarf Registered Posts: 528
    Have to ask ! Who or Roy Walker?
  • CJC77
    CJC77 Registered Posts: 62 ? ? ?
    reddwarf wrote: »
    Have to ask ! Who or Roy Walker?

    Oh dear god - have you never heard of him? I am only 31 and you are making me feel very old!!!!!
  • Brough
    Brough Registered Posts: 6 Regular contributor ⭐ ? ⭐
    Roy Walker

    Isn't he in car park catch phrase?
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