Differences between variable and absorption costing
Problem: What are the differences between variable and absorption costing? Why is variable costing not allowed for GAAP reporting? Which method is more useful for internal decision-making? Why? As a manager, which would you prefer? Why?
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What are the differences between variable and absorption costing? Why is variable costing not allowed for GAAP reporting? Which method is more useful for internal decision-making?
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If a company made a 100,000 investment in new equipment. Assuming the company's margin is 4%, what income will be earned if the investment generates $300,000 in additional sales?
During the most recent accounting period faux line and the traditional line sold 15,000 and 2,000 units. Financial statements are shown below.
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