Absorption costing: It is a costing in which the company includes all the cost including the fixed costing in order to determine the cost of a product. It is the costing method that a company is required to use for calculating and filing its taxes. Variable costing: It is the costing which includes all type of variable cost. It is an accounting method used to allocate production to its cost and it is done during the period. To indicate: The critical item that is treated differently under Variable costing and Absorption costing

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Answer 1

Question

Chapter 5, Problem 12Q

To determine

Absorption costing:

It is a costing in which the company includes all the cost including the fixed costing in order to determine the cost of a product. It is the costing method that a company is required to use for calculating and filing its taxes.

Variable costing:

It is the costing which includes all type of variable cost. It is an accounting method used to allocate production to its cost and it is done during the period.

To indicate:

The critical item that is treated differently under Variable costing and Absorption costing

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Answer 2

Question

Chapter 5, Problem 12Q

To determine

Absorption costing:

It is a costing in which the company includes all the cost including the fixed costing in order to determine the cost of a product. It is the costing method that a company is required to use for calculating and filing its taxes.

Variable costing:

It is the costing which includes all type of variable cost. It is an accounting method used to allocate production to its cost and it is done during the period.

To indicate:

The critical item that is treated differently under Variable costing and Absorption costing

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 3

Question

Chapter 5, Problem 12Q

To determine

Absorption costing:

It is a costing in which the company includes all the cost including the fixed costing in order to determine the cost of a product. It is the costing method that a company is required to use for calculating and filing its taxes.

Variable costing:

It is the costing which includes all type of variable cost. It is an accounting method used to allocate production to its cost and it is done during the period.

To indicate:

The critical item that is treated differently under Variable costing and Absorption costing

Expert Solution & Answer

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Answer 4

Question

Chapter 5, Problem 12Q

To determine

Absorption costing:

It is a costing in which the company includes all the cost including the fixed costing in order to determine the cost of a product. It is the costing method that a company is required to use for calculating and filing its taxes.

Variable costing:

It is the costing which includes all type of variable cost. It is an accounting method used to allocate production to its cost and it is done during the period.

To indicate:

The critical item that is treated differently under Variable costing and Absorption costing

Expert Solution & Answer

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Answer 5

Chapter 5, Problem 12Q

To determine

Absorption costing:

It is a costing in which the company includes all the cost including the fixed costing in order to determine the cost of a product. It is the costing method that a company is required to use for calculating and filing its taxes.

Variable costing:

It is the costing which includes all type of variable cost. It is an accounting method used to allocate production to its cost and it is done during the period.

To indicate:

The critical item that is treated differently under Variable costing and Absorption costing

Answer 6

Chapter 5, Problem 12Q

To determine

Absorption costing:

It is a costing in which the company includes all the cost including the fixed costing in order to determine the cost of a product. It is the costing method that a company is required to use for calculating and filing its taxes.

Variable costing:

It is the costing which includes all type of variable cost. It is an accounting method used to allocate production to its cost and it is done during the period.

To indicate:

The critical item that is treated differently under Variable costing and Absorption costing

Answer 7

Chapter 5, Problem 12Q

To determine

Absorption costing:

It is a costing in which the company includes all the cost including the fixed costing in order to determine the cost of a product. It is the costing method that a company is required to use for calculating and filing its taxes.

Variable costing:

It is the costing which includes all type of variable cost. It is an accounting method used to allocate production to its cost and it is done during the period.

To indicate:

The critical item that is treated differently under Variable costing and Absorption costing

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 5 - Define each of the following terms variable cost,...Ch. 5 - Prob. 2Q Ch. 5 - Prob. 3Q Ch. 5 - Prob. 4Q Ch. 5 - Prob. 5Q Ch. 5 - Describe the three methods used to estimate cost...Ch. 5 - Prob. 7Q Ch. 5 - Prob. 8Q Ch. 5 - Prob. 9Q Ch. 5 - Prob. 10Q

Solution Summary: The author explains the difference between Absorption costing and Variable Costing. The critical item treated differently is fixed manufacturing overhead.

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