quick question

Yes, thats right

GemmaLouise wrote: »

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 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!!!!!