Question: Why might net operating income not be the same for absorption and variable costing? Explain what causes the difference. In what circumstances would net operating

Why might net operating income not be the same for absorption and variable costing? Explain what causes the difference. In what circumstances would net operating income for both methods be the same? Give an example of a business segment. Explain and give an example of common fixed costs and traceable fixed costs

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Denton Company manufactures and sells a single product. Cost data for the product are given: Variable costs per unit: Direct materials $ 4 Direct labor 10 Variable manufacturing overhead 3 Variable...

exercise 6-3 reconcilistion of absorption and rariable costing net operating income Exercise 6-3 (Algo) Reconciliation of Absorption and Variable Costing Net Operating Incomes [LO6-3] [The following...

Variable expenses: Variable cost of goods sold 400,000 600,000 Variable selling and administrative expense 310.000 340.000 Total variable expenses 710,000 940.000 Contribution margin 290,000 560,000...

need help and explanation 1. 2. 3. Grainger Company produces only one product and sels that product for $100 per unit. Cost information far the product is as foliows: Seling expenses are $4 per unit...

PO AccessUH X Question 1 - HW Chapter 7 - Cor x + X > C D...

1. a. The unit product cost under absorption costing is: Direct materials................................... Direct labor......................................... Variable manufacturing...

Ida Sidha Karya Company is a family-owned company located on the island of Bali in Indonesia. The company produces a handcrafted Balinese musical instrument called a gamelan that is similar to a...

EXERCISE 4-2 Refer to the data in Exercise 4-1 for Ida Sidha Karya Company. The absorption costing income statement prepared by the company's accountant for last year appears as shown: Required: 1....

The Montre Company manufactures trendy, high-quality moderately priced watches. As Montres senior financial analyst, you are asked to recommend a method of inventory costing. The CFO will use your...

1. Compute the allocation rate that was used for manufacturing overhead in Exhibits 2 and 3. Using these rates, show the computations that were used for allocating manufacturing overhead in Exhibits...

1) Why did Best Holdings issue bond? What was the targeted proceeds from the bond issue? How much Best could raise so far? 2) What was the amount of outstanding debt as of August 31, 2018, of Best...

At December 31, 2013, Ingleton Company reports the following results for the year: Cash sales . . . . . . . . . $ 1,025,000 Credit sales . . . . . . . . 1,342,000 In addition, its unadjusted trial...

3310 Project Options Option 1: Unleash Your Creative Project Vision Put forth your very own project concept! The possibilities are vast and diverse. Feel free to explore uncharted territories, think...

Use the following information to compute working capital. Deferred sales revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 900 Accounts...

Devine Fashion in Chicago operates three departments: Men's, Women's, and Accessories. Devine Fashion allocates all fixed expenses (unavoidable building depreciation and utilities) based on each...

Shilling Manufacturing produces and sells oil filters for $3.25 each. A retailer has offered to purchase 20,000 oil filters for $1.55 per filter. Of the total manufacturing cost per filter of $2.10,...

1. Kevin Jones is single and recently graduated from law school. He earns $9000 per month, an awesome salary for someone only 26 years old. He also has $1400 withheld for federal income tax, $540 for...

NGW, a consumer gas provider, estimates a rather cold winter. As a result it decides to enter into a futures contract on the NYMEX for natural gas on November 2, 2016. The trading unit is 10,000...

Question 4 (10 points) The president of a consulting firm wants to minimize the total number of hours it will take to complete four projects for a new client. Accordingly, she has estimated the time...

9. Imagine that you have achieved the goal you set for yourself in task 8. a. What do you see in the past? b. How do you feel? c. What do you hear? d. How does this change your roles? e. How does...

8. Set a goal that you really want to achieve in the near future, lets say 12 years. How does this goal fit in relation to the form roles and values above? What role and what value was it that...

7. Fill out the form below. Only the most important roles and your basic values are to be filled.