ACCA

Marginal and Absorption Costing Methods

Marginal and Absorption Costing Methods

Marginal and Absorption Costing Methods The main difference between marginal costing and absorption costing is that Under Marginal costing all the fixed cost is treated as period cost whereas under Absorption costing the fixed cost is treated as product cost.   Marginal Costing Absorption Costing   Direct Material + Direct Labor + Variable FOH   …

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Materials Purchase Cycle

Materials Purchase Cycle – EXPLAINED

Materials Purchase Cycle   When a department stock level drops down , the particular department issues purchase request to purchase department in purchase requisition form stating stock item required with specific quantity and other specifications On receipt of  requisition form , purchase department place ORDER with supplier in purchase order form. This form contains all …

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