Question: Explain the difference between absorption costing and variable costing Why
Explain the difference between absorption costing and variable costing. Why do internal users need variable costing information?
Answer to relevant QuestionsWhat is the relevant range and why is it important? What is the critical item that is treated differently in full absorption versus variable costing? Explain how each method treats it. Indicate whether each of the following statements about the high-low method is true or false:a. The formula for the high-low method is (Highest Cost - Lowest Cost) / (Highest Activity - Lowest Activity)b. The high-low method ...Red Hawk Enterprises sells handmade clocks. Its variable cost per clock is $8, and each clock sells for $18. Calculate Red Hawk’s unit contribution margin and contribution margin ratio. Suppose Red Hawk sells 2,000 clocks ...Mountain Dental Services is a specialized dental practice whose only service is filling cavities.Mountain has recorded the following for the past nine months:Required:1. Use the high-low method to estimate total fixed cost ...
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