January 2023

Marginal Costing: Statement of Profit Worked Example

By |2022-09-15T12:30:34+02:00January 24th, 2023|Cambridge AS A Level Accounting, Notes, ZIMSEC A Level Accounting|

Cambrige AS and A Level Accounting Notes (9706)/ ZIMSEC  Advanced Accounting Level Notes: Marginal Costing: Statement of Profit Example

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Inventory valuation methods

By |2022-09-15T12:32:25+02:00January 24th, 2023|Cambridge AS A Level Accounting, Notes, ZIMSEC A Level Accounting|

Cambrige AS and A Level Accounting Notes (9706)/ ZIMSEC  Advanced Accounting Level Notes: Inventory valuation: Inventory valuation methods

  • The figure for inventory is obtained from actual physical stock takes
  • We have already looked at the exact definition of inventories during the introduction to inventories and when we looked at IAS 2
  • It has also been pointed out […]
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Overhead absorption and absorption rates (OAR)

By |2022-09-15T12:30:46+02:00January 24th, 2023|Cambridge AS A Level Accounting, Notes, ZIMSEC A Level Accounting|

Cambrige AS and A Level Accounting Notes (9706)/ ZIMSEC  Advanced Accounting Level Notes: Absorption Costing:  Overhead Absorption Rates (OAR)

  • As already pointed out elsewhere production overheads are usually calculated at the beginning of the accounting period
  • This would allow, for example, the business to determine how much cost to assign to a unit before calculating the selling price

    • […]

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Reconciliation of absorption and marginal profits

By |2022-09-15T12:30:33+02:00January 24th, 2023|Cambridge AS A Level Accounting, Notes, ZIMSEC A Level Accounting|

Cambrige AS and A Level Accounting Notes (9706)/ ZIMSEC  Advanced Accounting Level Notes: Reconciliation of marginal costing and absorption costing profits

  • Because absorption costing includes the cost of fixed overheads in:
    1. Opening and closing inventory and
    2. Cost of sales
  • There will be inevitable differences in profit figures calculated using the two methods
  • These differences will arise whenever there […]
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Inventory valuation methods: FIFO

By |2022-09-15T12:32:25+02:00January 24th, 2023|Cambridge AS A Level Accounting, Notes, ZIMSEC A Level Accounting|

Cambrige AS and A Level Accounting Notes (9706)/ ZIMSEC  Advanced Accounting Level Notes: Inventory valuation: Inventory valuation methods: First In First Out (FIFO)

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Absorption of Overheads: One Product Worked Example

By |2022-09-15T12:30:45+02:00January 24th, 2023|Cambridge AS A Level Accounting, Notes, ZIMSEC A Level Accounting|

Cambrige AS and A Level Accounting Notes (9706)/ ZIMSEC  Advanced Accounting Level Notes: Absorption of Overheads: One Product Worked Example

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Reconciliation of Marginal Costing and Absorption Costing Profits Example

By |2022-09-15T12:30:33+02:00January 24th, 2023|Cambridge AS A Level Accounting, Notes, ZIMSEC A Level Accounting|

Cambrige AS and A Level Accounting Notes (9706)/ ZIMSEC  Advanced Accounting Level Notes: Reconciliation of marginal costing and absorption costing profits

  • As has been said here, due to changes in inventory levels from period to period
  • The profit figures obtained using absorption costing and marginal costing method might vary
  • It is now time to look at an example

The […]

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Inventory valuation methods: FIFO: Example Question

By |2022-09-15T12:32:24+02:00January 24th, 2023|Cambridge AS A Level Accounting, Notes, ZIMSEC A Level Accounting|

Cambrige AS and A Level Accounting Notes (9706)/ ZIMSEC  Advanced Accounting Level Notes: Inventory valuation: Inventory valuation methods: First In First Out (FIFO): Example Question

  • We have looked at the FIFO method of valuing inventory here
  • Now it is time to look at an exam type of question
  • The solution to this question can be found here

Mary […]

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Absorption of Overheads: More than one product one department worked example

By |2022-09-15T12:30:44+02:00January 24th, 2023|Cambridge AS A Level Accounting, Notes, ZIMSEC A Level Accounting|

Cambrige AS and A Level Accounting Notes (9706)/ ZIMSEC  Advanced Accounting Level Notes: Absorption of Overheads: More than one product one department worked example

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The differences between marginal and absorption costing

By |2022-09-15T12:30:32+02:00January 24th, 2023|Cambridge AS A Level Accounting, Notes, ZIMSEC A Level Accounting|

Cambrige AS and A Level Accounting Notes (9706)/ ZIMSEC  Advanced Accounting Level Notes: Marginal Costing vs Absorption Costing

  • Having introduced you to both absorption costing and marginal costing
  • It is time to look at some of the differences between the two
  • In discussing marginal costing we have already pointed out the differences between it and marginal costing

    • […]

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