Preparation of variable costing income statement and reconciliation of net operating income under variable costing and absorption costing.
Variable and absorption costing problems
Variable and absorption costing unit product costs and income statements; Explanation of difference in net operating income.
Sales constant; Production varies; Impact of just in time (JIT) manufacturing system on variable and absorption costing statements.
Impact of constant production and sales fluctuations on absorption costing and variable costing income statements.