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Chapter 8

Absorption and marginal costing

Outcome

By the end of this session you should be able to:

 explain the importance of, and apply, the concept of contribution

 demonstrate and discuss the effect of absorption and marginal costing on
inventory valuation and profit determination

 calculate profit or loss under absorption and marginal costing

 reconcile the profits or losses calculated under absorption and marginal costing

 describe the advantages and disadvantages of absorption and marginal costing.

and answer questions relating to these areas.

The underpinning detail for this Chapter in your Notes can be found in
Chapter 8 of your Study Text

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