When Production > Pratical capacity, how do I know which model gives me the highest profit ? Total Full Costing or Full Costing based on Pratical capacity ?
In reply to gabriela lomachinsky
Re: Pratical capacity and Full costing
Hello Gabriela,
If production > practical capacity, assuming increasing stock levels (Production > Sales), FCPC produces higher profits.
Good study!
If production > practical capacity, assuming increasing stock levels (Production > Sales), FCPC produces higher profits.
Good study!