Chhose one of the questions below. Explain your response in a paragraph or two.
1. Explain the absorption costing method.
2. Explain the variable costing method.
3. Discuss the differences between variable and absorption costing.
4. When is it appropriate to use variable or absorption costing in financial reporting?
5. Under what specific circumstances would you expect net income to be larger under variable costing than under absorption costing? What is the reason for this difference?
Licenses and Attributions CC licensed content, Shared previously
Accounting Principles: A Business Perspective. Authored by: James Don Edwards, University of Georgia & Roger H. Hermanson, Georgia State University. Provided by: Endeavour International Corporation. Project: The Global Text Project. License: CC BY: Attribution
"Variable Costing Essay Questions" by Gary E. Ford, ACCT 102 Principles of Accounting, Tompkins Cortland Community College is licensed under CC BY 4.0
1. Explain the absorption costing method.
2. Explain the variable costing method.
3. Discuss the differences between variable and absorption costing.
4. When is it appropriate to use variable or absorption costing in financial reporting?
5. Under what specific circumstances would you expect net income to be larger under variable costing than under absorption costing? What is the reason for this difference?
Licenses and Attributions CC licensed content, Shared previously
Accounting Principles: A Business Perspective. Authored by: James Don Edwards, University of Georgia & Roger H. Hermanson, Georgia State University. Provided by: Endeavour International Corporation. Project: The Global Text Project. License: CC BY: Attribution
"Variable Costing Essay Questions" by Gary E. Ford, ACCT 102 Principles of Accounting, Tompkins Cortland Community College is licensed under CC BY 4.0