Cima P1 Exam Question No 14

Question No 14:

When using absorption costing method, what should you focus on?
When using absorption costing to determine the cost per unit, we focus on the production costs only. These costs can be summarized into a cost card:

Direct Materials per unit X
Direct Labour per unit X
Production overhead per unit X
_______________________________
Full production cost per unit X

Cima P1 Exam Question No 13

Question No 13:

What is the aim of traditional absorption costing?

The aim of traditional absorption costing is to determine the full production cost per unit.