Absorption Vs Marginal Costing on Profit and Loss Accounts

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Jessica_Barwick
Jessica_Barwick Registered Posts: 2
in Management Accounting: Decisions and Control
Hi Everyone,

I have my MDCL exam in just under a week and I am still finding 'task 3' challenging. I understand the fixed overheads are just a period cost within marginal costing and they are absorbed per unit in the other. I just cant get my head around calculating the opening / closing of inventory and production costs.

How do you all remember the difference?

Thank you

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  • CornishPixie
    CornishPixie Registered Posts: 115 Dedicated contributor 🦉
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    Are you able to post the question? Not everyone will have access tot he question so won't be able to help you..
  • CornishPixie
    CornishPixie Registered Posts: 115 Dedicated contributor 🦉
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    Have just had a look through some of the questions previously posted on here and you may want to have a look at the top question on page 3, which relates to Practice Assessment 1 Task 1.3. This has some very helpful advice if the question you are looking at involves the same question.

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