Absorption Vs Marginal Costing on Profit and Loss Accounts

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

Comments

  • CornishPixieCornishPixie Registered, MAAT, AATQB, AAT Licensed Accountant Posts: 53
    Are you able to post the question? Not everyone will have access tot he question so won't be able to help you..
  • CornishPixieCornishPixie Registered, MAAT, AATQB, AAT Licensed Accountant Posts: 53
    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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