Reconciliation of absorption and marginal profits
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:
- Opening and closing inventory and
- Cost of sales
- There will be inevitable differences in profit figures calculated using the two methods
- These differences will arise whenever there […]