Net income computed using absorption costing can be reconciled to the net income computed using variable costing by computing the difference between a. the gross profit under absorption costing and contribution margin under variable costing. b. the product costs per unit under the two costing methods. c. inventoried fixed factory overhead costs in the beginning and ending finished goods inventories. d. the selling prices under the two costing methods.

Net income computed using absorption costing can be reconciled to the net income computed using variable costing by computing the difference between a. the gross profit under absorption costing and contribution margin under variable costing. b. the product costs per unit under the two costing methods. c. inventoried fixed factory overhead costs in the beginning and ending finished goods inventories. d. the selling prices under the two costing methods.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Net income computed using absorption costing can be reconciled to the net income computed using variable costing by computing the difference between

a. the gross profit under absorption costing and contribution margin under variable costing.

b. the product costs per unit under the two costing methods.

c. inventoried fixed factory overhead costs in the beginning and ending finished goods inventories.

d. the selling prices under the two costing methods.

Definition Definition Total cost of procuring or producing a product or the cost that an individual or business owner undertakes for the manufacturing of goods.

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