Discuss the differences between variable and absorption costing. How does variable costing help a company make...
Discuss the differences between variable and absorption costing. How does variable costing help a company make good management decisions? List some examples of ways in which a business would report items that utilize variable costing models. Please no duplicate answers.
Homework Answers
Absorption costing is a method of costing which considers all the manufacturing costs i.e fixed and variable costs as product costs and in case of variable costing, only the variable costs are considered for product costing.
Variable costing helps management in making decisions as variable costing gives information regarding variable costs and contribution facilitates the management in taking decisions w.r.t fixation of selling price, introduction of a new product into the market etc
Add Answer to:
Discuss the differences between variable and absorption costing.
How does variable costing help a company make...
Discuss the differences between variable and absorption costing. How does variable costing help a company make...
Discuss the differences between variable and absorption costing. How does variable costing help a company make good management decisions? List some examples of ways in which a business would report items that utilize variable costing models. Answer in 200 to 250 words (original answers please no copies)
1. Discuss some differences between a service business and a merchandising business. Provide unique examples of...
1. Discuss some differences between a service business and a merchandising business. Provide unique examples of each in your discussion. Are there some businesses that incorporate both approaches and have products and services? If so, provide examples of these also. 2. Define Cost of Merchandise Sold in the context of an example of a business. In other words, define it by illustrating it as it pertains to a business you have chosen. As always, make your choice unique from your...
What are the differences between variable and absorption costs? And how useful both of the cost...
What are the differences between variable and absorption costs? And how useful both of the cost information to management.
Calculator Absorption Statement Absorption costing does not distinguish between variable and fixed costs. All manufacturing costs...
Calculator Absorption Statement Absorption costing does not distinguish between variable and fixed costs. All manufacturing costs are included in the cost of goods sold. Saxon, Inc. Absorption Costing Income Statement For the Year Ended December 31 Sales $1,280,000 $840,000 (168,000) Cost of goods sold: Cost of goods manufactured Ending inventory Total cost of goods sold Gross profit Selling and administrative expenses Operating income (672,000) $608,000 (305,000) $303,000 Variable Statement Under variable costing, the cost of goods manufactured includes only variable...
discuss the differences between measurements of growth and direct measurements of maturation. what does each measure?...
discuss the differences between measurements of growth and direct measurements of maturation. what does each measure? what are some examples of each?
please fill out a and b Variable and Absorption Costing-Service Company Lawn RX, Inc. prepares a...
please fill out a and b
Variable and Absorption Costing-Service Company Lawn RX, Inc. prepares a variable costing income statement for internal management and an absorption costing income statement for its bank. Lawn RX provides a quarterly lawn care service that is sold for $175. The variable and fixed cost data are as follows: Direct labor $100.00 Overhead Variable cost per unit $23.00 Fixed cost $100,000 Marketing general and administrative Variable cost per service contract completed) $24.00 Administrative expenses (fixed-...
Variable and Absorption Costing-Service Company Lawn RX, Inc. prepares a variable costing income statement for internal...
Variable and Absorption Costing-Service Company Lawn RX, Inc. prepares a variable costing income statement for internal management and an absorption costing income statement for its bank. Lawn RX provides a quarterly lawn care service that is sold for $155. The variable and fixed cost data are as follows: Direct labor $100.00 Overhead Variable cost per unit $7 Fixed cost (annual) $100,000 Marketing, general and administrative Variable cost (per service contract completed) $8 Administrative expenses (fixed- annual cost) $42,000 During 2016,...
Variable and Absorption Costing-Service Company Lawn RX, Inc. prepares a variable costing income statement for internal...
Variable and Absorption Costing-Service Company Lawn RX, Inc. prepares a variable costing income statement for internal management and an absorption costing income statement for its bank. Lawn RX provides a quarterly lawn care service that is sold for $190. The variable and fixed cost data are as follows: $100.00 Direct labor Overhead Variable cost per unit Fixed cost (annual) Marketing, general and administrative Variable cost (per service contract completed) Administrative expenses (fixed- annual cost) $33.00 $100,000 $34.00 $42,000 During 2016,...
Problem 6A-5 Super-Variable Costing, Variable Costing, and Absorption Costing Income Statements [LO6-2, LO6-6) Bracey Company manufactures...
Problem 6A-5 Super-Variable Costing, Variable Costing, and Absorption Costing Income Statements [LO6-2, LO6-6) Bracey Company manufactures and sells one product. The following information pertains to the company's first year of operations: $ 27 Variable cost per unit: Direct materials Fixed costs per year: Direct labor Fixed manufacturing overhead Fixed selling and administrative expenses $ 348,000 $ 379,200 $ 64,000 The company does not incur any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of...
9-22 ABSORPTION VERSUS VARIABLE COSTING. Electron Inc. is a semiconductor company based in Winnipeg. In 2018,...
9-22 ABSORPTION VERSUS VARIABLE COSTING. Electron Inc. is a semiconductor company based in Winnipeg. In 2018, it produced a new router system for its corporate clients. The average wholesale selling price of the system is 51,200 each. For 2018, Electron estimates that it will sell 10.000 router systems and so produces 10,000 units. Actual 2018 sales are 8,960 units. Electron's actual 2018 costs are: Variable costs per unit Manufacturing cost per unit produced $55 Direct materials Direct manufacturing tabour Manufacturing...
Calculator Absorption Statement Absorption costing does not distinguish between variable and fixed costs. All manufacturing costs are included in the cost of goods sold. Saxon, Inc. Absorption Costing Income Statement For the Year Ended December 31 Sales $1,280,000 $840,000 (168,000) Cost of goods sold: Cost of goods manufactured Ending inventory Total cost of goods sold Gross profit Selling and administrative expenses Operating income (672,000) $608,000 (305,000) $303,000 Variable Statement Under variable costing, the cost of goods manufactured includes only variable...
please fill out a and b
Variable and Absorption Costing-Service Company Lawn RX, Inc. prepares a variable costing income statement for internal management and an absorption costing income statement for its bank. Lawn RX provides a quarterly lawn care service that is sold for $175. The variable and fixed cost data are as follows: Direct labor $100.00 Overhead Variable cost per unit $23.00 Fixed cost $100,000 Marketing general and administrative Variable cost per service contract completed) $24.00 Administrative expenses (fixed-...
Variable and Absorption Costing-Service Company Lawn RX, Inc. prepares a variable costing income statement for internal management and an absorption costing income statement for its bank. Lawn RX provides a quarterly lawn care service that is sold for $190. The variable and fixed cost data are as follows: $100.00 Direct labor Overhead Variable cost per unit Fixed cost (annual) Marketing, general and administrative Variable cost (per service contract completed) Administrative expenses (fixed- annual cost) $33.00 $100,000 $34.00 $42,000 During 2016,...
Problem 6A-5 Super-Variable Costing, Variable Costing, and Absorption Costing Income Statements [LO6-2, LO6-6) Bracey Company manufactures and sells one product. The following information pertains to the company's first year of operations: $ 27 Variable cost per unit: Direct materials Fixed costs per year: Direct labor Fixed manufacturing overhead Fixed selling and administrative expenses $ 348,000 $ 379,200 $ 64,000 The company does not incur any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of...
9-22 ABSORPTION VERSUS VARIABLE COSTING. Electron Inc. is a semiconductor company based in Winnipeg. In 2018, it produced a new router system for its corporate clients. The average wholesale selling price of the system is 51,200 each. For 2018, Electron estimates that it will sell 10.000 router systems and so produces 10,000 units. Actual 2018 sales are 8,960 units. Electron's actual 2018 costs are: Variable costs per unit Manufacturing cost per unit produced $55 Direct materials Direct manufacturing tabour Manufacturing...
Most questions answered within 3 hours.
-
1) Use the Euclidean algorithm (write in pseudocode) to find the
greatest common divisor of 8...
asked 17 minutes ago -
Based upon the corporate proposal for this week, research three
different data storage options for your...
asked 19 minutes ago -
The equilibrium constant, Kp , for the following reaction is
1.04×10-2 at 548 K. NH4Cl(s) NH3(g)...
asked 39 minutes ago -
During a recent budgeting discussion, the CFO at "NW Accounting
Services" proposed eliminating the marketing research...
asked 37 minutes ago -
Block B has a mass of 3.80kg and is moving to the left at a
speed...
asked 41 minutes ago -
If n distinct objects are distributed randomly into
n distinct boxes, what is the probability that:...
asked 42 minutes ago -
a) The frequency of light coming out from a laser source is 297
MHz. What is...
asked 1 hour ago -
LABORATORY EXERCISES:
Using nested for loops, write a java program to print the
pattern as shown...
asked 1 hour ago -
Assume that the correlation coefficient between achievement test
scores (X) and grade point averages (Y) among...
asked 1 hour ago -
In Chapter 1 titled "So Close and Yet So Different", in "Why
Nations Fail" authors bring...
asked 1 hour ago -
Leadership Philosophy
Write a two-page paper identifying your personal leadership
philosophy based on your new perspective...
asked 1 hour ago -
Which of these function correctly defines the function g(),
which should return a pointer to a...
asked 1 hour ago