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Marginal Costing

In illustration 1(institute's textbook) why do we adjust the under or over absorption after the cost of goods sold ? And Also why is the selling fixed cost taken at the actuals ? (Just got confused with logics) Can u please clear the doubts w.r.t to the above two items in the absorption costing methods


Swathi Krishna

Swathi Krishna

CA Inter

7K+

04-Oct-20 00:57

20

Answers (4)

Which exact portion are you referring to?


Suraj Lakhotia

Suraj Lakhotia

Admin

04-Oct-20 12:18

In marginal costing The questions relating to the preparation of statements as per aborption costing and as per marginal costing In that chapter illustration 1


Swathi Krishna

Swathi Krishna

CA Inter

7K+

05-Oct-20 13:44

Plzz reply


Swathi Krishna

Swathi Krishna

CA Inter

7K+

09-Oct-20 02:04

1. That is as per absorption costing principles. 2. absorption is done only for production overheads.


Suraj Lakhotia

Suraj Lakhotia

Admin

11-Oct-20 18:12