Net profit under absorption costing may differ from net profit determined under d costing. How is this difference calculated? * Change in the quantity of all units in inventory times the relevant fixed cost per unit. Change in the quantity of all units produced times the relevant fixed cost per unit. Change in the quantity of all units in inventory times the relevant variable cost per unit. Change in the quantity of all units produced times the relevant variable cost per unit.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Net profit under absorption costing may differ from net profit determined under direct
costing. How is this difference calculated? *
O Change in the quantity of all units in inventory times the relevant fixed cost per unit.
O Change in the quantity of all units produced times the relevant fixed cost per unit.
O Change in the quantity of all units in inventory times the relevant variable cost per unit.
O Change in the quantity of all units produced times the relevant variable cost per unit.
Transcribed Image Text:Net profit under absorption costing may differ from net profit determined under direct costing. How is this difference calculated? * O Change in the quantity of all units in inventory times the relevant fixed cost per unit. O Change in the quantity of all units produced times the relevant fixed cost per unit. O Change in the quantity of all units in inventory times the relevant variable cost per unit. O Change in the quantity of all units produced times the relevant variable cost per unit.
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