Explain the difference between absorption and variable costing income statements and discuss which method has a...

Explain the difference between absorption and variable costing income statements and discuss which method has a greater chance of manipulation by management

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ekkarill92 answered 2 years ago

please provide discussions on Variable Costing and Absorption Costing Income Statements, State the difference between the...

please provide discussions on Variable Costing and Absorption Costing Income Statements, State the difference between the two. Please answe in word format only more than 350 words. Please dont copy the data from wikipedia or investopedia.

difference between absorption costing and variable costing

What is the difference between absorption costing and variable costing, and how can the choice between these two methods impact a company's reported profits and financial performance?

Discuss and compare absorption costing income statements with variable costing income statements. In your discussion, address...

Discuss and compare absorption costing income statements with variable costing income statements. In your discussion, address the following questions: 10 points a. What is the main difference between the two methods? b. Under what circumstances will the operating income under each method be the same? c. What situation will cause the absorption costing income to be higher than the variable costing income? d. What situation will cause the absorption costing income to be lower than the variable costing income? e....

Explain the difference between absorption costing and variable costing and which you think is more useful.

Explain the difference between variable costing and absorption costing. Describe the limitations of using variable costing....

Explain the difference between variable costing and absorption costing. Describe the limitations of using variable costing. Describe the limitations of using absorption costing. What difference do you notice on the income statement when prepared with absorption costing versus variable costing? "Managerial Accounting"

1.Explain the difference between variable and full costing. 2.Explain why income calculated under full absorption costing...

1.Explain the difference between variable and full costing. 2.Explain why income calculated under full absorption costing will be greater than income calculated under variable costing when production exceeds sales. Explain how a manufacturing company can "bury" fixed manufacturing costs in ending inventory under full absorption costing. 3.If the fixed manufacturing overhead cost per unit under full costing is multiplied by the change in inventory between the beginning and ending of the period, what does the resulting number represent?

You have been asked to explain the difference between NOI for absorption costing and variable costing...

You have been asked to explain the difference between NOI for absorption costing and variable costing for Duncan Inc. You have the following information regarding the performance for the year: Absorption Variable Sales $ 1,260,000 Sales 1,260,000 Cost of goods sold 810,000 Variable cost of goods sold 720,000 Gross margin 450,000 Variable selling and administrative expenses 120,000 Selling and administrative expenses 195,000 Contribution margin 420,000 NOI $ 255,000 Fixed manufacturing overhead 120,000...

Prepare an absorption and variable income statement and prove the difference between the two statements Units...

Prepare an absorption and variable income statement and prove the difference between the two statements Units in beginning inventory 0 Units sold 35,000 Units produced 40,000 Ending inventory 5,000 Variable cost per unit Fixed costs Direct materials 5 Fixed overhead $160,000 Direct labor 6 Fixed selling $210,000 Variable OH 1 Variable selling exp 2 Sales price $40

What is the difference between absorption and variable costing and why does inventory level which is...

What is the difference between absorption and variable costing and why does inventory level which is reported on the Balance Sheet affect net income which is reported on the Income Statement? How is the accounting definition of an asset related to the decision to use absorption vs. variable costing?

In your own words, explain the difference between absorption costing and variable costing methods. How does...

In your own words, explain the difference between absorption costing and variable costing methods. How does each treat fixed manufacturing overhead? Provide an example and calculate the unit product cost using each method.

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