
Income Statement:
It is also known as
Variable Costing:
It refers to the method of product costing in which the price of the product is calculated considering only the variable or direct costs or the cost that happened to occurred due to the product only. It is also called as marginal costing as it takes marginal costs while calculating the product cost.
Absorption Costing:
It refers to the method of product costing in which the price of the product is calculated considering all the fixed as well as the variable or direct costs. The
1.
To prepare: Income statement of the company for the year using variable costing
2.
To explain: The difference in income between the variable costing and absorption costing income statement.

Want to see the full answer?
Check out a sample textbook solution
Chapter 19 Solutions
GEN COMBO LOOSELEAF FINANCIAL AND MANAGERIAL ACCOUNTING; CONNECT ACCESS CARD
- Get Answer Of This Question. please Solve With General Accounting Methodarrow_forwardFinancial statements are prepared from the balances in a(n) ________. A. Unadjusted trial balance B. Adjusted trial balance C. Chart of accounts D. General journalarrow_forwardPlease provide correct answer this financial accounting questionarrow_forward
- Answer ? Financial Accountingarrow_forwardChanging the method of valuing inventory ignores the principle of ________. A. Lower of cost or market B. Specific identification C. Consistency D. Ending inventory comes from the most recent purchasesarrow_forwardSolve Answer With Mothodology of General Accountingarrow_forward
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education





