ACCA PAPER F2 MANAGEMENT ACCOUNTING 管理会计考试讲义笔记 09 Marginal And Absorption Costing.doc

CH9 MARGINAL AND ABSORPTION COSTING 1. MARGINAL COST AND MARGINAL COSTING　　Marginal costing is an alternative method of costing to absorption costing. In marginal costing, only variable costs are charged as a cost of sale and a contribution is calculated （sales revenue minus variable cost of sales）. Closing stocks of work in progress or finished goods are valued at marginal （variable） production cost. Fixed costs are treated as a period cost, and are charged in full to the profit and loss account of the accounting period in which they are incurred. 　　Marginal cost is the cost of a unit of a product or service which would be avoided if that unit were not produced or provided.　　The marginal production cost per unit of an item usually consists　　Surat is a small business which has the following budgeted marginal costing profit and loss account for the month ended 31 December 2001: 　　 ? 　 ￡’000 ￡’000 Sales 　　 48 Cost of sales: 　　 　　 　　 Opening stock 3 　　 　　 Production costs 36 　　 　　 Closing stock （7） 　　 　　 　　 　　 （32） 　　 　　 　　 16 Other variable costs: 　　 　　 　　 Selling 　　 （3.2） 　　 　　 　　 　　 Contribution 　　 12.8 Fixed costs: 　　 　　 　　 Production overheads 　　 （4） 　　 Administration 　　 （3.6） 　　 Selling 　　 （1.2） Net profit 　　 4.0 　　 　　 　　 　　 The standard cost per unit is: 　　 　　 　　 ￡ 　　 Direct materials （1kg） 　　 8 　　 Direct labour （3 hours） 　　 9 　　 Variable overheads （3 hours） 　　 3 　　 　　 　　 20 　　 Budgeted selling price per unit 　　 30 　　The normal level of activity is 2,000 units per month. Fixed production costs are budgeted at ￡4,000 per month and absorbed on the normal level of activity of units produced.　　2. C vs. MARGINAL COSTING　　Example A company sells a single product at a price of ￡14 per unit. Variable manufacturing costs of the product are ￡6.40 per unit. Fixed manufacturing overheads, which are absorbed into the cost of production at a unit rate （based on normal activity of 20,000 units per period）, are ￡92,000 per period. Any over-ab