ABSORPTION AND VARIABLE COSTING Learning Objectives 1. Explain the accounting treatment of fixed manufacturing overhead under absorption and variable costing. 2. Prepare an income statement under absorption costing. 3. Prepare an income statement under variable costing. 4. Reconcile reported income under absorption and variable costing. 5. Explain the implications of absorption and variable costing for cost-volume-profit analysis. 6. Evaluate absorption and variable costing.
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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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definition‚ the societal institutions are places like‚ government offices‚ and schools. These institutions according to him help continue to maintain the status quo by preserving the existing barriers between classes. To investigate this there are two main ways to analyze the situation‚ one can use the advocate deterministic model or the model that focuses more on the autonomy of the individual. The deterministic model takes into account the structural requirement of the capitalist economic system
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the Youtube video “Watch Inequality in America‚” from the politizane channel‚ the video states that your everyday CEO makes 380 times more than their average worker. If you do the math‚ then the average employee would have to work over a month to make what the CEO makes in only one hour (2012). So‚ besides pay inequality what else is affecting the nation’s poverty? While it is true that a large reason for the staggering amount of poverty in America comes from pay inequality‚ it also comes from the
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WHAT IS A RANDOM VARIABLE? A random variable assigns a number to each outcome of a random circumstance‚ or‚ equivalently‚ a random variable assigns a number to each unit in a population. It is easier to create rules for broad classes of situations and then identify how a specific example fits into a class than it is to create rules for each specific example. We can employ this strategy quite effectively for working with a wide variety of situations Involving probability and random outcomes. We
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ED1031 Introduction to Education Studiesp Discuss the reasons why you think that Education Studies is a relevant field of study for anyone wishing to become a teacher. For many centuries‚ teaching has evolved to become a science rather than a practice. It is safe to argue that both teachers and students have changed their approach towards education in order to optimize their potential and efficiency (Mellado 1998). These adaptations can be partly attributed to the demands from the economically
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Women’s rights in Brazil. Inequality between men and women has been one of the causes of Brazil falling apart as a country over the last 20 years. While gender and women’s inequality progressing to decrease they still continue to face many more causes from it. For example‚ poverty‚ income growth‚ and violence because of gender biased or discrimination against women and genders in Brazil. Women’s status has been changing in Brazil but has been making an effort for gender inequality and Women continue to
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IEEE TRANSACTIONSON INDUSTRIAL ELECTRONICS‚VOL. 40‚ NO. 1‚ FEBRUARY 1993 Variable Structure Control: A Survey John Y. Hung‚ Member‚ IEEE‚ Weibing Gao‚ SeniorMember‚ IEEE‚ and James C. Hung‚ Fellow‚ IEEE Abstract-A tutorial account of variable structure control with brief discussions about its historical development are pre- sliding mode is presented in
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association between social trust and economic growth and stay robust throughout a Jackknife exercise and an extreme bound analysis implying that it is unlikely that these results are driven by outliers or omitted variables. Reverse causation is ruled out by adopting an instrumental variable approach. Further findings suggest that the effect of social trust on economic performance depends‚ however‚ on the development level of the country. Moreover‚ the analysis provides further evidence that human
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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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