What is the main difference between absorption costing and variable costing system. How does production and sales have impact on the variation of income in absorption costing and variable costing system.

Q: Questions: a. What is the net income under variable costing method? b. What is the net income…

A: The question is based on the concept of Cost Accounting.

Q: Q- 2: and variable costing? What is the basic difference between absorption costing

A: “Since you have posted a many questions, we will solve first question for you. To get the remaining…

Q: TRUE OR FALSE The use of absorption costing facilitates contribution margin approach in preparing…

A: Performa of income statement under absorption costing Particulars  Amount Sales  - Less :…

Q: Marginal Costing

A: Option a is wrong because marginal costing is not a technique of cost reduction. Cost reduction…

Q: in intended application between sales life-cycle analysis and life-cycle costing

A: The strategic pricing depends on the product price which it supported the worth it charges to the…

Q: What is a product cost? What is a period cost? What is the difference and why is it important to…

A: Product cost refers to all costs directly pertaining to the production of a product. While, Period…

Q: Is variable or absorption costing a better method of computing income from operations?  Why?

A: Variable costing only covers the variable costs directly involved in production but excludes all…

Q: Are selling and administrative expenses treated as product costs or as period costs under variable…

A: Selling and administrative expenses:   These expenses incurred by the company does not relate to the…

Q: What is variable costing? How does it differ from absorpotion costing? Which can better be used to…

A: Variable Costing is a costing method where variable expenses change in proportion with production.…

Q: ow do I prepare an income statement based on variable co

A: In managerial accounting, variable costing is a cost concept. During the creation of a product…

Q: Explain how variable costing system costing is used to calculate the cost of goods manufactured.…

A: (1)  Variable costing system The variable costs are included in the product cost in variable…

Q: What could be the reason for which you can have different income figures in absorption costing and…

A: Cost accounting is the branch of accounting that inspects the cost structure of a business. This…

Q: Between Absorption Costing and Variable Costing method, which one do you think is more practical to…

A: Absorption costing considers fixed manufacturing overheads and variable overheads together to find…

Q: A. What is the net income under variable costing method? B. What is the net income under absorption…

A: solution : What is the net income under variable costing method?   Units 10000 Sales…

Q: What are these equations? c.Under absorption costing, what is the cost of goods sold? d.Under…

A: Hey, since there are multiple subparts posted, we will answer the first three subparts. If you want…

Q: Why do cost systems differ in terms of their level of sophistication

A: A cost system is a systematic framework or approach used by organizations to track, assign, and…

Q: Which cost accounting method assumes that the cost of production is driven by the number of units…

A: Methods of costing Different industries follow different methods for ascertaining cost of their…

Q: Kendall, who earned $126,000 during 2022, is paid on a monthly basis, is married, (spouse does not…

A: Computation of tentative withholding$9,615 + ($126,000 - $83,550) * 22%$9,615 + $9,339$18,954Note…

Q: 1. What is the net income under variable costing method? 2. What is the net income under absorption…

A: Variable costing means that inventory is valued at variable manufacturing cost and fixed cost is…

Q: Question #2 What is absorption costing and marginal costing in the context of overhead costs?…

A: Overhead costs are the indirect costs incurred in operating the business. It does not include any…

Q: Cost-volume-profit analysis is used to make many decisions, including product pricing and…

A: The cost volume profit analysis is used to assess how the firm’s profit is affected if there is a…

Q: TRUE OR FALSE Net income under variable costing is closely tied to changes in sales levels.

A: Fixed cost remains same under the variable costing. No matter how much units are produced, the total…

Q: What is the difference in variable costing and absorption costing on the income statement? Which…

A: In accounting of cost there are many methods of reporting of cost of manufacturing. Depending on the…

Q: NUBD Co. presented the following data for 2021: Sales Variable manufaduring costs Fixed…

A: Under the Variable costing method, fixed production costs are considered period costs and are not…

Q: Describe the following costing systems: Marginal and Absorption costing Explains the effect on…

A: There are two different ways in which cost of goods sold and finished goods in inventory can be…