Module 10 - Absoprtion Costing Flashcards
1
Q
Pre-determined OAR
A
Budgeted overheads / budgeted basis (think units)
2
Q
Period-end OAR
A
Actual fixed production overheads / budgeted basis (think units)
3
Q
Value of closing stock
A
(Op stock units + actual production units - actual sales units) X (variable production cost per unit + OAR)
4
Q
Budgeted production units
A
Budgeted sales - budgeted reduction in stock levels
Bit common sense don’t think would be asked directly
5
Q
Difference in profit
Between marginal and absorption costing
A
Stock movement X OAR
6
Q
Closing stock
A
Opening stock + production - sales
7
Q
Reconciling figure between profit under absorption and marginal costing
A
OAR x Stock Movement
