Question: Income statements, using absorption costing are sometimes difficult to interpret becaule they shift portions of foed manufacturing overhead between periods according to changing levels of
Income statements, using absorption costing are sometimes difficult to interpret becaule they
shift portions of foed manufacturing overhead between periods according to changing levels of inventony.
ignore inventory levels when determining cost of goods sold.
include all foxed manufacturing overhead in the calculation of ope rating income
omit variable expenses when computing operating income.
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