Net earnings determined using full absorption costing can be reconciled to net earnings determined using variable costing by computing the difference between * Inventories fixed costs in the beginning and ending inventories and any deferred over or under-applied fixed factory overhead.
Net earnings determined using full absorption costing can be reconciled to net earnings determined using variable costing by computing the difference between * Inventories fixed costs in the beginning and ending inventories and any deferred over or under-applied fixed factory overhead.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Net earnings determined using full absorption costing can be reconciled to net earnings
determined using variable costing by computing the difference between *
Inventories fixed costs in the beginning and ending inventories and any deferred over or under-applied fixed
factory overhead.
Inventories discretionary costs in the beginning and ending inventories.
O Gross margin (absorption costing method) and contribution margin (variable costing method)
Sales as recorded under the variable costing method and sales as recorded under the absorption costing
method
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