A2 Use of costing methods Flashcards
1
Q
Absorption cost Formula
A
Absorption cost=Variable cost + overheard
(Absorption cost = direct costs + share of indirect costs)
2
Q
Marginal cost formula
A
Marginal Cost = Change in Total Cost / Change in Quantity
3
Q
Total cost formula
A
Total cost = Fixed cost + Total variable costs
4
Q
Variable cost formula
A
Variable cost = Cost per unit x Total number amount
5
Q
Total production cost
A
(Variable cost per unit x Number of units produced)
