CA Shivam Gupta (Chartered Accountant) (25 Points)
27 January 2017
Back in the Game
(a)
(1273 Points)
Replied 27 January 2017
In marginal costing Administration cost is committed cost hence irrelevant in acceptance of offer whilst in absorption costing it has to be allocated over the units to be produced in new offer to arrive at cost per unit.
Kuldeep
(****Articleship/CA Final student****)
(187 Points)
Replied 28 January 2017
Administrative cost is fixed cost/unavoidable cost, so it is sunk cost and irrelevant for decision making.
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