6. When do variable costing and absorption costing result in different net income amounts? 7. Internal users prefer using variable costing over absorption costing. Provide at least two reasons why. 8. a) In short-term decision-making what are the two characteristics of information that is "relevant" i. ii. In deciding whether to sell apples or make pie filling with them, circle the items that are "relevant" to the decision Costs of growing the apples Selling price of apples Cost of processing apples into pie filling Relative demand for apples and pie filling b) i. ii. iii. iv. In deciding whether to accept or reject a special order where there is excess c) capacity, circle the items that are "relevant" to the decision Regular selling price Fixed manufacturing overhead Selling price of special order i. ii. iii. In deciding whether to make or buy a component of our product, circle the items that are "relevant" to the decision The selling price of our product The direct material cost of producing (making) the component The cost of installing the component into our product. d)