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Accounting for Management
Explanations, Exercises, Problems and Calculators
Variable and absorption costing
Explain the difference between variable costing and absorption costing approaches.
Compute the unit product cost under variable and absorption costing.
Prepare income statement using variable and absorption costing and explain the difference in net operating income under two costing systems.
What are the advantages and disadvantages of variable costing system?
What are the advantages and disadvantages of absorption costing system?
Number of pages:
Approximate time required:
2 – 2.5 hours
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Variable costing versus absorption costing
Causes of difference in net operating income under variable and absorption costing
Variable and absorption costing with just in time (JIT) manufacturing system
Advantages and disadvantages of variable costing
Advantages and disadvantages of absorption costing