Why is net profit always greater in absorption costing, Accounting Basics

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Why is net profit always greater in absorption costing

why is net profit always greater in absorption costing than indirect costing? Why cost accountants use two types of costing methods i-e absorption costing and direct costing? Identify a case where absorption costing yields higher net profit than direct costing?

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Accounting Basics: Why is net profit always greater in absorption costing

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Request for Solution File

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Accounting Basics: Why is net profit always greater in absorption costing

Reference No:- TGS0555531

Have a Question? (oR Write a Review)

Recent Questions Asked Accounting Basics

Q : Explain overhead expenses which common in factory overheads

Q : Determine the annual unit sales volume

Q : What is the effect on the accounting equation

Q : Compute the volume in units and the dollar sales

Q : Why is net profit always greater in absorption costing

Q : Determine how many new clients must visit the law office

Q : Compute the number of component

Q : What is depreciation expense

Q : The stockholder''s equity section of the balance sheet

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Request for Solution File

Ask an Expert for Answer!!

Accounting Basics: Why is net profit always greater in absorption costing

Reference No:- TGS0555531

Recent Questions Asked Accounting Basics

Q : Explain overhead expenses which common in factory overheads

Q : Determine the annual unit sales volume

Q : What is the effect on the accounting equation

Q : Compute the volume in units and the dollar sales

Q : Why is net profit always greater in absorption costing

Q : Determine how many new clients must visit the law office

Q : Compute the number of component

Q : What is depreciation expense

Q : The stockholder''s equity section of the balance sheet

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