Net income computed using absorption costing can be reconciled to the net income computed using variable costing by computing the difference between a. the gross profit under absorption costing and contribution margin under variable costing. b. the product costs per unit under the two costing methods. c. inventoried fixed factory overhead costs in the beginning and ending finished goods inventories. d. the selling prices under the two costing methods.
Net income computed using absorption costing can be reconciled to the net income computed using variable costing by computing the difference between a. the gross profit under absorption costing and contribution margin under variable costing. b. the product costs per unit under the two costing methods. c. inventoried fixed factory overhead costs in the beginning and ending finished goods inventories. d. the selling prices under the two costing methods.
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter7: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 4MTC
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Net income computed using absorption costing can be reconciled to the net income computed using variable costing by computing the difference between
a. the gross profit under absorption costing and contribution margin under variable costing.
b. the product costs per unit under the two costing methods.
c. inventoried fixed factory overhead costs in the beginning and ending finished goods inventories.
d. the selling prices under the two costing methods.
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