PEV Reconciling

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
If a question asks 'prepare a stament reconciling the standard cost of production to the actual cost of production' do you put fixed overheads in?

Will a question say 'prepare a stament reconciling the standard cost of production to the actual cost of production using absorption' if it wants????

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PEV Reconciling

    The answer to this is yes! However how you deal with the fixed overheads in the reconciliation statement will depend on whether you are doing it under marginal or absorption costing. The exam paper for June 2006, asks you to prepare a reconciliation statement using both types of costing, a look at this might help! :D
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PEV Reconciling

    Thanks a lot :lol:

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