Page 15 - Manac Costing Test 1 class slides - 2. Variable And Absorption Costing
P. 15
COSTING
Costing variances
• The volume variance for overhead/labour should be
included ABOVE the gross profit line, as part of the
production cost for the period under review.
• The volume and expenditure variances are only
calculated when doing a Statement of Profit or Loss
and Other Comprehensive Income on the absorption
costing method.
• The expenditure variance is covered in tandem
with the volume variance as they are often
confused with one another.
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