A. What is the net income under variable costing method? B. What is the net income under absorption costing method?
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A: PRICE 1. Price is what you pay for purchasing goods or availing the services. Also called sale…
Q: Questions: a. What is the net income under variable costing method? b. What is the net income…
A: The question is based on the concept of Cost Accounting.
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A: Absorption Costing: "Absorption costing is a method that allocates "direct labor, direct materials,…
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A: Variable costs are those costs that change with the change in production. Whereas, fixed cost are…
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A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…
Q: a. What problems are associated with using the average cost per unit as a performance measure? b.…
A: Average cost per unit only rewards the manager for removing tasks or materials from the process…
Q: Is variable or absorption costing a better method of computing income from operations? Why?
A: Variable costing only covers the variable costs directly involved in production but excludes all…
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A: Discretionary cost: A discretionary expense is a cost that a business or household can survive…
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Q: What is the amount of the difference between the variable costing and absorption costing net…
A: Sales 3,311,000 Variable costs Direct Materials 1,161,000…
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A: Direct variable cost are those cost incurred in line with production or for a particular product or…
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A: Cost refers to the amount of money incurred for acquiring a product or manufacturing a product. Cost…
Q: Show income comparison's of absorption and variable costing?
A: Absorption costing method can be defined as the all the costs that is associated with the production…
Q: How do managers decide whether a cost is avariable or a fixed cost?
A: Cost refers to the amount of money incurred for acquiring a product or manufacturing a product. Cost…
Q: d. Explain why there is or is not a difference in the net income amounts in the two income…
A: Absorption costing and variable costing are two costing methods under which the major difference…
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A: Relevant cost: Relevant cost is the cost which is relevant in decision making of a project, and…
Q: A. Compute net income under i. Absorption Costing $ ii. Variable Costing
A: The variable costing method and absorption costing are two methods of costing to find the cost of…
Q: what are the differences between the FIFO, LIFO, and the average cost?
A: Inventory: It refers to the items held by an organization which were in various forms like raw…
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A: In managerial accounting, variable costing is a cost concept. During the creation of a product…
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A: Cost is the monetary value of expenditures for raw materials, technology, supplies, services, labor,…
Q: When will NOI under the variable costing method show higher income than under the absorption costing
A: Net Operating Income: It is a calculation used to assess the profitability of the business.
Q: What are costs that have characteristics of both a variable and fixed cost?
A: A cost that has characteristics of both a variable cost and a fixed cost is called a mixed costs or…
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A: Constant gross-margin percentage NRV method: Constant gross margin percentage NRV method is a method…
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A: The income statement is prepared to record the revenues and expenses of the current period.
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A: Prime costs are the firm total expenses directly related to the materials and labour used in…
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A: Inventory valuation is the valuation of inventory at the time of its purchase and sale using…
Q: a. What problems are associated with using the average cost per unit as a performance measure? b.…
A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…
Q: Define the following concepts: a)Prime cost b) Non production cost c)Total cost
A: The term cost refers to the monetary value of expenditure for raw materials, technology, supplies,…
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A: Economic costs are the costs in which consideration is given to opportunity costs as well.
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A: If the change in cost and change cost driver level is of direct proportion, it is not fixed cost or…
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A: As posted multiple sub parts we are answering only first three sub parts kindly repost the…
Q: Distinguish between ( a ) a variable cost, ( b ) a fixed cost, and ( c ) a mixed cost.
A: Variable Cost: The cost which is not fixed is called as variable cost. This cost is directly…
Q: What is the difference between total costs and marginal costs?
A: Total cost is the total economic cost of production. Variable cost changes according to the quantity…
Q: It is important to understand variable and fixed costs, average expenses, and the overall costs.
A: Introduction: We're only responding to the first three subparts, so if you have a question that…
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A: Absorption costing: Absorption costing is compulsory under Generally Accepted Accounting…
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A:
Q: 1. What is the net income under variable costing method? 2. What is the net income under absorption…
A: Variable costing means that inventory is valued at variable manufacturing cost and fixed cost is…
Q: 1. What would the manufacturing cost per unit be under absorption costing? 2. What would the…
A: C Division of White Company 1 Calculation of manufacturing cost per unit using Absorption Costing:…
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A: As posted multiple questions we are answering only first question kindly repost the unanswered…
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A: The cost represents the value incurred by the corporation in making the product ready to sell in the…
Q: What is the term used to describe costs that increase in steps? A. Variable costs B. Fixed costs…
A: Cost is referred as the essential part of the business or a company which looks after the costs such…
Q: a) average fixed cost, b) average variable cost, and c) total profit?
A: Markup Percentage = ((Selling Price - Cost)/Costs) * 100 Fixed and Variable cost - We know that…
A. What is the net income under variable costing method?
B. What is the net income under absorption costing method?
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- Statement of cost of goods manufactured and income statement for a manufacturing company The following information is available for Shanika Company for 20Y6: Instructions 1. Prepare the 20Y6 statement of cost of goods manufactured. 2. Prepare the 20Y6 income statement.What are the total costs to account for if a companys beginning inventory had $231,432 in materials, $186,450 in conversion costs, and added direct material costs ($4,231,392), direct labor ($2,313,392), and manufacturing overhead ($1,156,696)?Product cost concept of product pricing Based on the data presented in Exercise 12-15, assume that Willis Products Inc. uses the product cost concept of applying the cost-plus approach to product pricing. a.Determine the total manufacturing costs and the cost amount per unit for the production and sale of 200,000 units. b.Determine the product cost markup percentage per unit. Round to two decimal place. c.Determine the selling price per unit. Round to the nearest dollar.
- To determine the effect of different levels of production on the company’s income, move to cell B7 (Actual production). Change the number in B7 to the different production levels given in the table below. The first level, 100,000, is the current level. What happens to the operating income on both statements as production levels change? Enter the operating incomes in the following table. Does the level of production affect income under either costing method? Explain your findings.Wachowski Company reported these cost data for the year 2017. Use the data to complete the following table. Total prime costs Total manufacturing overhead costs Total conversion costs Total product costs Total period costsCicleta Manufacturing has four activities: receiving materials, assembly, expediting products, and storing goods. Receiving and assembly are necessary activities; expediting and storing goods are unnecessary. The following data pertain to the four activities for the year ending 20x1 (actual price per unit of the activity driver is assumed to be equal to the standard price): Required: 1. Prepare a cost report for the year ending 20x1 that shows value-added costs, non-value-added costs, and total costs for each activity. 2. Explain why expediting products and storing goods are non-value-added activities. 3. What if receiving cost is a step-fixed cost with each step being 1,500 orders whereas assembly cost is a variable cost? What is the implication for reducing the cost of waste for each activity?
- Cost of quality and value-added/non-value-added reports for a service company A. Using the information in Exercise 17, identify the cost of quality classification for each activity and whether the activity is value-added or non-value-added. B. Prepare a cost of quality report. Assume that sales are 3,000,000. (Round percentages to one decimal place.) C. Prepare a value-added/non-value-added analysis. D. Interpret the information in (B) and (C).How do I prepare an Income Statement for March 2022 by using the absorption costing method? Other info: The variable manufacturing cost per unit and total manufacturing cost per unit of the finished goods on 01 March 2022 was R21.60 and R26.20 respectively.The following information is available for Robstown Corporation for 20Y8:Please see the attachement:Instructions1. Prepare the statement of cost of goods manufactured.2. Prepare the income statement.
- In using FIFO method, Richer Company produces a product that undergoes three processes and the completed items at end of process 3 are the items to be sold to customers. For December 2021, Richer Company presented the following costs on three processes: *see image attached* 1. What is the amount of cost of goods manufactured? a. P226,926.61 b. P234,541.61 c. P240,072.00 d. None of the above 2. What is the total units to account for (TUTAF) in Department 1? a. 16,000 b. 15,100 c. 15,000 d. 15,700Use the information given below to prepare the Income Statement for March 2022 according to theabsorption costing method. INFORMATIONThe following information was extracted from the accounting records of Alpha Enterprises for the month ended 31March 2022:Sales 3 200 unitsSelling price per unit R100Finished products on 01 March 2022 400 unitsProducts manufactured during the month 3 600 unitsVariable manufacturing costs per unit R26Variable selling and administrative costs per unit sold R12Fixed manufacturing costs R25 200Fixed selling and administrative costs R12 400 Additional informationThe variable manufacturing cost per unit and total manufacturing cost per unit of the finished goods on 01 March2022 was R21.60…Use the information given below to prepare the Income Statement for March 2022 according to theabsorption costing method. INFORMATIONThe following information was extracted from the accounting records of Alpha Enterprises for the month ended 31March 2022: Sales 3 200 unitsSelling price per unit R100Finished products on 01 March 2022 400 unitsProducts manufactured during the month 3 600 unitsVariable manufacturing costs per unit R26Variable selling and administrative costs per unit sold R12Fixed manufacturing costs R25 200Fixed selling and administrative costs R12 400