Chapter 3: Marginal & Absorption costing Flashcards
1
Q
What does absorption costing determine?
A
The full production cost per unit
2
Q
overhead absorption rate *
A
Production Overhead
______________________ = OAR
Activity Level
3
Q
Contribution per unit *
A
(selling price - direct materials - direct labour - variable overheads) - All per unit
4
Q
Total Contribution *
A
contribution per unit x unit sales
5
Q
Profit *
A
Total Contribution - Fixed Costs
6
Q
A
