A company produces and sells one type of product. The details for last year were as follows:
Question:
A company produces and sells one type of product. The details for last year were as follows:
There was no inventory at the start of the year.
Calculate the actual profit for the year that would be reported using:
(i) marginal costing;
(ii) absorption costing.
Transcribed Image Text:
Production and sales Production (units) Sales (units) Budget 25,000 23,000 Actual 22,000 20,000
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