Answered: What is the difference in variable…

What is the difference in variable costing and absorption costing on the income statement? Which method is useful for manager's in making pricing and costing decisions?

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

What is the difference in variable costing and absorption costing on the income statement? Which method is useful for manager's in making pricing and costing decisions?

Expert Solution

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In accounting of cost there are many methods of reporting of cost of manufacturing. Depending on the choice of managers they adopt different methods.

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