FECT中级考试笔记会计
Chapter 12 Absorption costing and marginal costing
Inventory costing methods
Two major methods of inventory costing are absorption costing and marginal costing. These methods differ in one conceptual aspect： whether fixed manufacturing costs are inventoriable.
Absorption costing （total cost）is a method of inventory that includes all direct or indirect manufacturing costs as inventoriable costs it is the total cost divided by the number of items produced. It includes all the costs incurred in making the product spread evenly and fairly over each item produced.
Marginal cost concerned yourself only with what extra cost has been incurred in making one more item. It is a method of inventory costing that includes only variable manufacturing costs as inventoriable costs； fixed manufacturing costs are written off in the period when they are incurred.
Marginal costing is concerned with the extra cost of producing another item on the basis that despite increased production， certain costs won＊t increase at all.
Marginal cost equation：
S——sales revenue V——total variable costs
C——contribution margin F——total fixed costs.
P——profit
C＝S － V P＝C F S V＝P+F
If the total contribution has just covered all fixed costs， it is called breakeven situation.
If the variable costs remain in direct proportion to the sales revenue is 40%， the contribution to sales is 60%.
【FECT中级考试笔记会计】相关文章：
云南会计从业资格考试会计复习笔记04-01
会计从业资格考试会计基础章节复习笔记04-01
会计从业资格考试会计基础章节的复习笔记04-01
中级会计职称《中级会计实务》冲刺题04-09
中级医师考试条件12-12
会计从业资格考试会计基础章节复习笔记分享04-01
中级会计师考试考什么 难度大吗02-15
中级医师考试报考条件12-15