I am a bit confused that whether actual variable factory overheads are used both in marginal costing and absorption costing FOR valuation of closing stock (This confusion has been created by different treatments in module and suggested answers)
03 March 2011
yes variable factory overheads are used both in marginal costing and absorption costing as the mariginal costing concerned about the variable element of the production cost and undr absorption costing full cost is considered
03 March 2011
Yes sir I agree with you but actually i want to know that
what to do if both budgeted variable overhead and actual variable overhead are given : whether to use absorbed for poduction cost or to provide under or overrecovery adjustment befor calculating cost of product
CAclubindia
