Operating Statements - PCR

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Hi, I wonder if someone can help me.

Task 2.1 June 2004 exam.

When the actual has different sales and production figures do you always flex the budget on the sales volume regardless of whether you are doing Marginal Costing or Total Absorption Costing? This one is confusing me somewhat.

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Operating Statements - PCR

    You flex it to the sales volume however you will need to change the actual figures for material labour etc because they have made 10000 units.

    e.g Material would be 52000/10000 x 8800 to give actual material costs for 8800 units.

    Bit of a double flexing question and not a nice paper!!!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Operating Statements - PCR

    Many thanks for your help - that makes a lot more sense now.

    Thanks.

    Susan

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