A firm presently has total sales of P100,000. If its sales rise, its fixed costs will also rise. net income based on absorption costing will go up more than its net income based on variable costing. per unit variable costs will rise. net income based on variable costing will go up more than its net income based on absorption costing.

A firm presently has total sales of P100,000. If its sales rise, its fixed costs will also rise. net income based on absorption costing will go up more than its net income based on variable costing. per unit variable costs will rise. net income based on variable costing will go up more than its net income based on absorption costing.

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter10: Forecasting Financial Statement

Section: Chapter Questions

Problem 4QE: Suppose you are analyzing a firm that is successfully executing a strategy that differentiates its...

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