Concept explainers
Concept Introduction:
Variable cost method is a method of costing which is also termed as direct costing in which all variable
Total cost method is a method of costing in which total cost i.e. fixed cost and variable cost is considered to determine the selling price of a product.
Comparative income statement is a income statement which determines the profitability of two comparative alternatives. It determines the profitability by deducting total costs and expenses from sales value.
Requirement 1:
We have to determine the three column comparative income statement.
Concept Introduction:
Variable cost method is a method of costing which is also termed as direct costing in which all variable manufacturing costs are allocated to the product during the period.
Total cost method is a method of costing in which total cost i.e. fixed cost and variable cost is considered to determine the selling price of a product.
Comparative income statement is a income statement which determines the profitability of two comparative alternatives. It determines the profitability by deducting total costs and expenses from sales value.
Requirement 2:
We have to determine the three column comparative income statement.
Concept Introduction:
Variable cost method is a method of costing which is also termed as direct costing in which all variable manufacturing costs are allocated to the product during the period.
Total cost method is a method of costing in which total cost i.e. fixed cost and variable cost is considered to determine the selling price of a product.
Comparative income statement is a income statement which determines the profitability of two comparative alternatives. It determines the profitability by deducting total costs and expenses from sales value.
Requirement 3:
We have to determine the three column comparative income statement.

Want to see the full answer?
Check out a sample textbook solution
Chapter 25 Solutions
FUND ACCOUNTING PRINCIPLES BUNDLE
- Off-set the losses for the appropriate years using the rules as applied in Trinidad and Tobago and those in Jamaica: XYZ Company Limited in year of assessment 2015 makes net income of $8,000,000 and its PYL was $9,000,000. XZY registered in December 2014 for GCT/VAT and declared that its estimated income for the year of assessment 2015 as $2,999,000.arrow_forwardTimberline Services Company, a division of a major energy company, provides various services to the operators in the Rocky Mountain oil fields. For the most recent year, the company reported sales of $22,500,000, net operating income of $7,500,000, and average operating assets of $40,000,000. What is the margin for Timberline Services Company? Accountingarrow_forwardI need correct answer of this general accounting questionarrow_forward
- Please solve this question general accountingarrow_forwardWhat is the level of its accounts receivable on these general accounting question?arrow_forwardFor the following scenarios, off-set the losses for the appropriate years using the rules as applied in Trinidad and Tobago and those in Jamaica: In the year of assessment 2012, Company McKenzie Incor. Ltd has PYL of $3,800,000 to its disposal. In 2013 the company made net income of $4,700,000 and 3,800,000 in 2014.arrow_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





