Shalom Company manufactures 50,000 units of a product and sells 40,000 units. Total manufacturing cost per unit is P50 (variable manufacturing cost, P10; fixed manufacturing cost, P40). Assuming no beginning inventory, what is the effect on net income if absorption costing is used instead of variable costing? net income is P200,000 higher net income is P400,000 higher net income is the same net income is P400,000 lower
Shalom Company manufactures 50,000 units of a product and sells 40,000 units. Total manufacturing cost per unit is P50 (variable manufacturing cost, P10; fixed manufacturing cost, P40). Assuming no beginning inventory, what is the effect on net income if absorption costing is used instead of variable costing? net income is P200,000 higher net income is P400,000 higher net income is the same net income is P400,000 lower
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 13PA: Grainger Company produces only one product and sells that product for $100 per unit. Cost...
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