Please, could someone correct this statement
full costing
In this calculation the total overheads are allocated to each activity in a simply manner. you have to be divide up the overheads cost by a formula method which could be simple. So you divide up the total overheads by a ratio which is given.

absorption cost
The overheads are apportioned to particular products, then we can calculate the share of these apportioned overheads that should by each unit.

marginal cost
This is an approach to make future decision easier. It include the variable costs of producing the extra unit, but it ignore fixed costs as they are unaffected by the level of activity.

Question

Please, could someone correct this statement
full costing
In this calculation the total overheads are allocated to each activity in a simply manner. you have to be divide up the overheads cost by a formula method which could be simple. So you divide up the total overheads by a ratio which is given.

absorption cost
The overheads are apportioned to particular products, then we can calculate the share of these apportioned overheads that should by each unit.

marginal cost
This is an approach to make future decision easier. It include the variable costs of producing the extra unit, but it ignore fixed costs as they are unaffected by the level of activity.

Answer

Amadine is absolutely right.

Answer

full costing
In this calculation the total overheads are allocated to each activity in a simple manner. You have to divide up the cost of overheads cost using a simple formula. So, you divide up the total overheads in the given ratio.

absorption cost
The overheads are first apportioned to particular products, then we can calculate the share of these apportioned overheads per unit.

marginal cost
This is an approach to make future decisions easier. It includes the variable costs of producing extra units, but it ignores fixed costs as they are unaffected by the level of activity.

Answers · 2

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