The volume of manufacturing in a period has an effect on income calculated using absorption costing but
Question:
The volume of manufacturing in a period has an effect on income calculated using absorption costing but has no effect on income calculated using variable costing. Explain.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (3 reviews)
Under variable costing all fixed manufacturing overhead is treated as an expense of the period ...View the full answer
Answered By
PRINCE PANDEY
I am Indian Chartered Accounting having a strong hold in the subjects of Accounting, IFRS Reporting, Indian
Taxation, Cost Accounting, Auditing. I have vast experience of teaching a student with easy way problem-solving approach.
5.00+
1+ Reviews
10+ Question Solved
Related Book For
Management Accounting
ISBN: 9780730369387
4th Edition
Authors: Leslie G. Eldenburg, Albie Brooks, Judy Oliver, Gillian Vesty, Rodney Dormer, Vijaya Murthy, Nick Pawsey
Question Posted:
Students also viewed these Business questions
-
Explain why skeletal muscle contraction has an effect on venous flow but not arterial flow?
-
To determine whether drinking alcoholic beverages has an effect on the bacteria that cause ulcers, researchers developed the following table of joint probabilities. a. What proportion of people have...
-
Rounding inside the computer often has an effect on the result. Assume that your machine has eight significant digits. (a) Show that the machine will compute (2/3) + ((2/3) - (1/3)) as unequal to...
-
You work in the finance department of a telecommunications firm with a large direct sales force selling high- speed fiber optics access lines to companies wanting telephone and Internet access. Your...
-
Adjusting entries affect one balance sheet account and one income statement account. For the entries listed below, identify the account to be debited and the account to be credited. Indicate which of...
-
A tree one hundred cubits high is distant from a well two hundred cubits; from this tree one monkey climbs down the tree and goes to the well, but the other leaps in the air and descends by the...
-
A \(200 \mathrm{MW}\) laser pulse is focused with a lens to a diameter of\(2.0 \mu \mathrm{m}\). What is the laser beam's electric field amplitude at the focal point?
-
Cramer Company projects the following sales for the first three months of the year: $ 12,500 in January; $ 13,240 in February; and $ 14,600 in March. The company expects 70% of the sales to be cash...
-
This is a quick-paced program with an intense course load and as such it requires a strong commitment on your part. Do you have time and resources to commit to such a program at this time? Please...
-
On 1 July 2014, Capers Ltd purchased equipment for a total cost of $220 000 including 10% GST. The estimated useful life of the equipment was 10 years, with an estimated residual value of $15 000....
-
Explain how income could fall even though the unit sales level rises.
-
Explain how the breakeven point would be affected under both absorption and variable costing.
-
A tightly stretched high wire is 46 m long. It sags 2.2m when a 60.0-kg tightrope walker stands at its center. What is the tension in the wire? Is it possible to increase the tension in the wire so...
-
Two people (47 kg and 81 kg) holding hands stand on rollerblades 1.0 m apart. Determine the location of their center of mass (the distance from the 47-kg person). Express your answer to two...
-
Calculate the insured premium value at CIP=10% for 2 * 40 ft containers valued FCA USD $26,000.00 Ocean freight: USD $6,000.00 total Canadian land and handling: USD $750.00 total Marine premium rate...
-
What characterization can be provided for the corporate culture that prevailed within Enron during its existence?
-
Suppose there are two independent economic factors, M1 and M2. The risk-free rate is 7%. Portfolios A and B are both well diversified. Portfolio Beta on M1 Beta on M2 Expected Return A 1.8 2.1 40% B...
-
Ablock of mass m= 10,3 kg slides down a ramp that makes an angle of 0=23,80 degree with the horizontal, accelerating at a = 0,35 m/s. Find the coefficient of kinetic friction between the block and...
-
Capacitors are used in many applications where one needs to supply a short burst of relatively large current. A 100.0-F capacitor in an electronic flash lamp supplies a burst of current that...
-
Suppose the index goes to 18 percent in year 5. What is the effective cost of the unrestricted ARM?
-
Operating budgets: labor hiring plan Strathfield Motel is planning its operations for the upcoming tourist season. The motel has 60 units. The following table presents the average number of daily...
-
During the school year, the Homebush School band arranges concert dates in many communities. Because only part of the school??s travel expenses are covered by the concert admission fees, the band...
-
Financial budgets: cash inflows Worthington Company makes cash (20% of total sales), credit card (50% of total sales), and account (30% of total sales) sales. Credit card sales are collected in the...
-
What actions could JP Chase & Morgan have used to lessen the impact of the 2 0 1 3 financial loss? Explain
-
SUCCEEDING IN THE SOCIAL AND MOBILE WORKPLACE. Topic 1: Strong communication skills are key to success. Topic 2: Developing listening skills. Topic 3: Becoming interculturally proficient. describe...
-
How do spatial and temporal variations in resource availability, such as seasonality, habitat heterogeneity, and nutrient gradients, influence food chain dynamics, including predator-prey...
Study smarter with the SolutionInn App