Fixed manufacturing overhead costs are expensed as units are sold

Asked by admin @ 28/10/2021 in Business viewed by 308 People

Explain the difference between variable costing and absorption costing income statements. Provide income statements in both variable costing and absorption costing formats for an initial period and its successive period in a case where all manufactured products within the two periods are sold by the end of the second period, but number of units sold in the first period is less than the number of units manufactured in this period. What is the interesting observation in comparing the two types of income statements

Answered by admin @ 28/10/2021

Answer:

The part of fixed manufacturing Overhead cost which is carried forward as part of closing inventory is the only difference in the profits of two methods.

Explanation:

The difference is because of assigning of the fixed manufacturing Overhead cost to the finished products in Traditional Absorption Costing whereas variable charge the whole of the fixed manufacturing Overhead cost as a period cost which means it is not assigned to the product. So this is the only difference between the two methods.

Able, baker, and charles are engaged in the marketing to and enrollment of beneficiaries into medicare health plans. mr. able is an independent agent paid directly by a health plan. ms. baker is an independent agent paid through a field marketing organization (fmo). mr. charles is an independent agent paid for his work by a third-party marketing organization (tmo). how do the cms compensation rules apply to these three agents?

Asked by maham237 @ 13/01/2021 in Business viewed by 2742 persons

Fixed manufacturing overhead costs are expensed as units are sold

Similar Questions

Compute the total manufacturing overhead costs allocated to job 494

Using the high low method the fixed cost is calculated

Which of the following statements regarding fixed costs is incorrect

How much does it cost to manufacture a cardboard box

Which of the following is not a fixed cost

Manufacturing overhead applied to work in process

What is variable manufacturing cost

Fixed overhead expenditure

Budgeted manufacturing overhead rate

Income __________ when there is zero beginning inventory and all inventory units produced are sold.

How much does it cost to manufacture a board game

Under a job order costing system the product being manufactured

Prime cost plus variable overhead is known as

20 reduction in the unit cost of an article

Recording of fixed assets at cost ensures adherence of

Most viewed questions in Business

Foolproof module 9 test answers

Interest rates are expressed as a percentage of

How to enhance knowledge regarding environmental factors through capsim?

Match the job titles with the career clusters.

A company that allows you to license software

Lupe is ready to open a checking account

Mays and mccovey are beer brewing companies

What must be marked on ready to eat bags phfs

Coq six sigma

Henry ford was the first entrepreneur to implement which strategy

Your company was recently served with a lawsuit

Case study starting a business project schedules and curves edgenuity

Which two of the four cs of credit have to do with earning potential and available cash?

The total annual expenditures on advertising in the united states