June 04 2.1 b - profit stmnt using marginal costing??

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Can someobdy please put me out of my misery??<BR><BR>In this question it asks us to prepare an operating statement using marginal costing. To me that means do not include Fixed Overheads. WHY then have the included fixed costs in the answer??<BR><BR>Thanks <BR>G<BR><BR><BR>

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    June 04 2.1 b - profit stmnt using marginal costing??

    fixed costs are included after calculating the contribution.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    June 04 2.1 b - profit stmnt using marginal costing??

    Marginal costing treats fixed costs as PERIOD costs<BR>and variable costs only are used to determine PRODUCT costs
  • System
    System Posts: 100,534 🤖 Admin 🤖
    June 04 2.1 b - profit stmnt using marginal costing??

    Thankyou for replying.<BR><BR>So, if we were asked to prepare a flexed budget using marginal costing would i still input the fixed costs?<BR><BR>Sorry I just cant get my head round it at all.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    June 04 2.1 b - profit stmnt using marginal costing??

    I hope my answer to this question helps click on June 2004 PAR whole paper on <BR><a target=new class=ftalternatingbarlinklarge href="http://www.cxgames.co.uk/sandy/">http://www.cxgames.co.uk/sandy/</a&gt;

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