1. Variable cost per unit is constant while fixed cost per unit is not constant. Do you agree. Yes or No. Explain your reason. 2. Profit prepared under absorption costing would reflect a higher profit than those financial statement prepared under variable costing, when there is a closing stock. Do you Agree or Not Agree. Explain your reason.
1. Variable cost per unit is constant while fixed cost per unit is not constant. Do you agree. Yes or No. Explain your reason. 2. Profit prepared under absorption costing would reflect a higher profit than those financial statement prepared under variable costing, when there is a closing stock. Do you Agree or Not Agree. Explain your reason.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
10.
Transcribed Image Text:1. Variable cost per unit is constant
while fixed cost per unit is not
constant.
Do you agree. Yes or No. Explain
your reason.
2. Profit prepared under
absorption costing would reflect a
higher profit than those financial
statement prepared under
variable costing, when there is a
closing stock.
Do you Agree or Not Agree.
Explain your reason.
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