
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.

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Chapter 19 Solutions
FINANC. MANGERIAL ACCT. W/CONNECT (LL)
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