Absorption Costing Income Statement: The old method of income statement uses absorption costing to make a income statement. In this we divide cost into the product cost and the period cost. Variable Costing Income Statement: In this we reduces all variable cost from the revenue from the operation first and thereafter we reduces all fixed type expenses. To calculate: Difference in the profit between full absorption costing and variable costing

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Chapter 5, Problem 5.3GAP

To determine

Concept introduction:

Absorption Costing Income Statement: The old method of income statement uses absorption costing to make a income statement. In this we divide cost into the product cost and the period cost.

Variable Costing Income Statement: In this we reduces all variable cost from the revenue from the operation first and thereafter we reduces all fixed type expenses.

To calculate:

Difference in the profit between full absorption costing and variable costing

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