Question: - Absorption vs Variable Costing What is the difference in presentation between the two income statements? - Product vs Period costs and Variable vs Fixed

- Absorption vs Variable Costing What is the difference in presentation between the two income statements? - Product vs Period costs and Variable vs Fixed costs. - Prepare both income statements. Reconcile the difference between the two income figures. - What causes the difference in income between the two methods? - Which method produces a higher income when units produced equals units sold? Units produced is greater than units sold? Units produced is less than units sold? Which method must be used for GAAP purposes? - What are segmented income statements? Advantages and disadvantages of using segmented income statements? -What are traceable fixed costs? Common fixed costs? Segment Margin? - How is segment margin found

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