What are the income relationships between absorption and variable costing when production volume differs from sales volume?
Question:
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 38% (18 reviews)
When production exceeds volume absorption costing income will be higher than variable costin...View the full answer
Answered By
Nyron Beeput
I am an active educator and professional tutor with substantial experience in Biology and General Science. The past two years I have been tutoring online intensively with high school and college students. I have been teaching for four years and this experience has helped me to hone skills such as patience, dedication and flexibility. I work at the pace of my students and ensure that they understand.
My method of using real life examples that my students can relate to has helped them grasp concepts more readily. I also help students learn how to apply their knowledge and they appreciate that very much.
4.00+
1+ Reviews
10+ Question Solved
Related Book For
Cost Accounting Foundations and Evolutions
ISBN: 978-1111626822
8th Edition
Authors: Michael R. Kinney, Cecily A. Raiborn
Question Posted:
Students also viewed these Cost Accounting questions
-
What is the difference between absorption and variable costing in the treatment of fixed overhead?
-
Absorption and variable costing Thornell Manufacturing pays its production managers a bonus based on the company's profitability. During the two most recent years, the company maintained the same...
-
What are the income and net worth requirements for being an accredited investor? What in the requirements for designation as an accredited investor relates to the level of sophistication? Do the...
-
The read-write head for a hand-held music player has a surface area of 0.04 mm. The head is held 0.04 m above the disk, which is rotating at a constant rate of 1800 rpm. Determine the torque T that...
-
Financial statement data of Morgan Engineerign include the following items: Requirements 1. Compute Morgan's current ratio, debt ratio, and earnings per share. Round all ratios to two decimal places....
-
MacKenzie Corporation currently has 11 million shares of stock outstanding at a price of $42 per share. The company would like to raise money and has announced a rights issue. Every existing...
-
An engine is used on a job requiring \(110 \mathrm{~kW}\) BP. The mechanical efficiency of the engine is \(80 \%\) and engine consumes \(50 \mathrm{~kg} / \mathrm{hr}\) of fuel. A design improvement...
-
The Ploughman family owns and operates a 640-acre farm that has been in the family for several generations. The Ploughmans always have had to work hard to make a decent living from the farm and have...
-
what are some the limitations of title VII of the Civil Rights Act- E? what are some of the limitations of equal Pay Act of 1963? what are some of the limitations of age Discrimination in Employment...
-
Visit the website of your choice and explore it thoroughly. Prepare a report analyzing the various functions provided by that website and its information requirements. Your report should answer these...
-
Why does variable costing provide more useful information than absorption costing for making internal decisions?
-
Lansing Mfg. prepared the following 2010 abbreviated flexible budget for different levels of machine hours: Each product requires 4 hours of machine time, and the company expects to produce 10,000...
-
Find the area of a parallelogram bounded by the x-axis, the line g(x) = 2, the line f(x) = 3x, and the line parallel to f(x) passing through (6, 1).
-
Which are true about TIPS? I. The interest payment is constant, and the principal is adjusted for inflation or deflation. II. The interest payment is variable, and the principal is adjusted for...
-
Which of the following is not appropriate for a short-term investment horizon? A. Certificates of deposit with maturities of 60 months or less. B. Money market demand account. C. Money market mutual...
-
Suppose that a Big Mac sells for 40.90 Norwegian kroners in Oslo and that the exchange rate is 8.18 kroners per U.S. dollar. If a Big Mac sells for $4.35 in New York, can you say that the law of one...
-
The annual inflation rate in Venezuela was 200% during 2015. For the same year, the U.S. annual inflation rate was 1%. If the Venezuelan bolivar traded at 0.10 U.S. dollar in 2015, what was the...
-
Rank the following from the lowest to the highest credit risk. I. Certificate of deposit with six-month maturity date. II. Money market fund. III. Tax-exempt money market fund. IV. Treasury bills. A....
-
Seats Ltd (Seats) manufactures seats for installation in buses. It obtains its raw materials from Comfort Ltd (Comfort), a wholly owned subsidiary which sells only to Seats. The raw materials of foam...
-
Why is the national security argument for tariffs questionable?
-
A standard model for describing the dispersion of chemical pollutants in the atmosphere is the Gaussian plume model. In this model it is assumed that the wind carries the pollutant in the \(x\)...
-
Use the Tree City Sporting Goods Company data in Short Exercise 3-15 to make the company's closing entries at July 31, 2016. Then set up a T-account for Retained Earnings and post to that account....
-
Tree City Sporting Goods reported the following data at July 31, 2016, with amounts adapted in thousands: 1. Compute Tree City's net working capital. 2. Compute Tree City's current ratio. Round to...
-
Refer to the Tree City Sporting Goods Company data in Short Exercise 3-17. At July 31, 2016, Tree City Sporting Goods Company's current ratio was 1.90 (rounded) and its debt ratio was 0.45 (rounded)....
-
How is decision-making in organizations best supported by Management Accounting (a descriptive nature) and how should it be supported by Management Accounting (a prescriptive nature)? Is there a gap...
-
Discuss the thermodynamic principles governing the separation of azeotropic mixtures using advanced distillation techniques such as pressure swing distillation, extractive distillation, and hybrid...
-
respond to the discussion In the IMA article, Activity-Based Costing (ABC) is explained as a cost allocation technique that traces indirect costs (often referred to as "overhead") to specific cost...
Study smarter with the SolutionInn App