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Exercise 17.32 On your way to a meeting with the board of directors, your assistant provides you with last months income sta

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Answer #1

rate positively ..

Ans1)
Income statement 1 is based on the variable costing method
Because cost of goods sold under option 1 is lower.
Ans2)
Product was GREATER THAN sales for the month
This is bacause profit under absorption costing is higher. This means production is greater than sales.
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