1) When will profits reported under variable and absorption costing differ? How can we reconcile the profits reported under the two approaches? Profits reported under variable and absorption costing will differ when inventory increases or decreases during the year. The difference involves the timing with which fixed manufacturing overhead becomes an expense. Under variable costing‚ fixed overhead is expensed immediately as it is incurred. Under absorption costing‚ fixed overhead is inventoried
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Major Export and Import Products of China China is the largest exporter and second largest importer of goods in the world. Its major trading partners are from various countries which are European Union‚ United Stated‚ ASEAN‚ Japan‚ Hong Kong‚ South Korea‚ Taiwan and etc. As part of China’s continuing effort to become competitive in the global marketplace‚ China joined the World Trade Organization (WTO) in the year 2001. After China joined the WTO‚ it has benefited coastal cities especially in the
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Duties of a Student by- Md. Abdul Mannan1 The period of life‚ which we spend to receive education in educational institutions‚ is called student life. It is not only the best time of a man’s life but also the seedtime as the success and happiness in our life depend on how we have spent our student life. That is why‚ this life is the life of work‚ of duties and responsibilities if the later part of life is to be a life of achievement and success. But what exactly are the duties of this life? Giving
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Project on EXPORT-IMPORT MANAGEMENT EXPORT - IMPORT POLICY OF INDIA Abhijeet Bansode. PREAMBLE CONTEXT For India to become a major player in world trade‚ an all encompassing‚ and comprehensive view needs to be taken for the overall development of the country’s foreign trade. While increase in exports is of vital importance‚ we have also to facilitate those imports which are required to stimulate our economy. Coherence and consistency among trade and other economic policies is important
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between macroeconomic variables and stock exchange returns in the Pakistani capital market. The techniques of multiple linear regression will be applied to understand if there is indeed a link between the two. The time series data being analyzed is on a monthly basis and spans from January 2003 to January 2009. The indicators taken as the independent variables are manufacturing production index‚ consumer price index‚ discount rate‚ broad money‚ foreign exchange‚ gold in million troy ounces‚ and the
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Variable costing and absorption costing are the two most commonly used methods of inventory costing for manufacturing companies. The inventory method of variable costing takes place when total direct and indirect variable manufacturing costs are included within inventoriable costs. Fixed manufacturing costs however‚ are considered costs of the period under variable costing. The next method of inventory costing‚ absorption costing‚ includes all variable manufacturing costs as well as fixed manufacturing
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Patel Subject: Recommendations Introduction Below are my recommendations to Mr. Philip Long‚ the CFO of DeviceCo‚ regarding tasks he has assigned me to do. The tasks entail answering the following questions in my analysis of whether LeaseMed is a Variable Interest Entity (VIE) and if DeviceCo should consolidate LeaseMed as a primary beneficiary: (1) Does DeviceCo qualify for the business scope exception‚ (2) Does LeaseMed have sufficient equity to finance its activities without additional subordinated
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Absorption and Variable Costing‚ Inventory Management Absorption and Variable costing are very important tools for cost accounting. Both of these costing methods allow you to see the cost of your inventory‚ in a different way. For example the absorption method allows you to assign all costs to the product‚ while variable costing allows only variable costs to be assigned to the product. Inventory management is extremely important as well because it ties into efficiency and lowering your costs so that
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two billion eight hundred twenty-five million two hundred seventy-six thousand one hundred twenty US dollars (See appendix A1). The GNP per person is twenty thousand five hundred thirty US dollars. (ucatlas.uscs.edu‚ 2003) This means that South Korea is producing twenty thousand five hundred thirty US dollars worth of products per person in South Korea each year. South Korea has a Gross Domestic Product (GDP) of one trillion fourteen billion five hundred million US dollars. Compared to the BRIC countries
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Plant overhead $122‚000 D/L rate/hour $30 Youngstown has a traditional cost system. It calculates a plant-wide overhead rate by dividing total overhead costs by total direct labor hours. Assume‚ for the calculations below‚ that plant overhead is a committed (fixed) cost during the year‚ but that direct labor is a variable cost. 1. Calculate the plant-wide overhead rate. Use this rate to assign overhead costs to products and calculate the profitability of the four products. The assignment
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