What is the amount of the difference between the variable costing and absorption costing net operating incomes (losses)?

Q: What is the effect of an increase in activity on the followingitems?a. Total variable costs.b.…

A: Cost behavior: Cost behavior is the relationship between cost and activity and it is relevant to the…

Q: When units produced are less than units sold, how does operating income differ between variable…

A: Absorption Costing: "Absorption costing is a method that allocates "direct labor, direct materials,…

Q: Explain the difference between total variable costs and variable costs per unit.

A: Cost can be categorized as variable and fixed costs.

Q: when total contribution margin equals total fixed cost this indicates operating income

A: The contribution margin is described as that amount which is computed after reducing variable costs…

Q: Which costs will change with a decrease in activity within the relevant range? Unit variable cost…

A: Cost can be classified into two categories i.e fixed cost and variable cost. The fixed cost remains…

Q: If the units produced exceed the units sold, which method would you expect to show the higher net…

A: Variable Costing: Variable Costing takes into account only variable manufacturing costs for…

Q: Cost-volume-profit analysis favors either variable costing or absorption costs. Why?

A: The CVP analysis is used to analyse the impact of changes in variable cost and fixed cost on net…

Q: Explain the methods of segregating semi-variable costs into fixed and variable cost.

A: Variable cost is the cost which remains variable and fluctuate according to the level of production.…

Q: Show the effects oncontribution margin of changesin variable costs, fixed costs,selling price, and…

A: Cost-Volume-Profit (CVP) Analysis: It is a method followed to analyze the relationship between the…

Q: What is the effect of an increase in activity on total variable costs,variable cost per unit of…

A: Total cost refers to the cost or amount incurred by the company in production of its goods and…

Q: How do you find the variable cost per unit produced and sold ?

A: First step in computing the variable cost of unit produce and sold is to analyse the nature of…

Q: If the units produced exceed unit sales, which method would you expect to show the higher…

A: Cost accounting is the branch of accounting that inspects the cost structure of a business. This…

Q: costs that change proportionately according to the changes in the cost driver.......

A: variable costs are the costs that change according to the changes in the cost drivers or changes…

Q: When units produced exceed units sold, how does operating income differ between variable costing and…

A: Absorption costing:   Absorption costing is compulsory under Generally Accepted Accounting…

Q: What is the similarity of fixed costs with variable costs and its differences.

A: similarities and differences of fixed cost and variable cost are discussed in step 2

Q: Explain why there is a difference in the operating profit and operating income under the two methods…

A: The product cost in an absorption costing method includes all variable and fixed production…

Q: Which of the following cost is not considered as period cost under marginal costing? Variable…

A: Marginal Costing: Marginal Costing is a costing technique whereby variable cost are charged to cost…

Q: Net income under Variable costing Method

A: Solution:- Calculation of Income under Variable costing method as follows:- Note:- Calculation of…

Q: ow do I prepare an income statement based on variable co

A: In managerial accounting, variable costing is a cost concept. During the creation of a product…

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: TRUE OR FALSE Net income under variable costing is unaffected by changes in production levels.

A: in variable costing fixed manufacturing overhead are exclude from the cost of production

Q: What is the difference between absorption-costing income and variable-costing income?

A: The income statement is prepared to record the revenues and expenses of the current period.

Q: Income statement under variable costing method

A: in variable costing method, product costs are only made up of variable expenses like direct…

Q: What is the total variable cost per unit What is the total fixed cost What is the contribution…

A: Contribution margin per unit=Revenue per unit- Variable cost per unitRevenue per unit×100

Q: How does Lean Production reduce or eliminate the difference in reported net operating income between…

A: Absorption Costing: Absorption costing is a method for calculating the full cost or total cost of a…

Q: Which of the following costs has no relationship with the level of output? a) Semi-variable costs.…

A: Semi variable and variable costs has a direct relationship with the level of output. Stepped fixed…

Q: A changes in direct proportion to changes in the cost-driver level * mixed costs O fixed costs O…

A: If the change in cost and change cost driver level is of direct proportion, it is not fixed cost or…

Q: Under absorption costing, how is it possible to increase net operating income without increasing…

A: Format of Income Statement under Absorption Costing

Q: Explain variable costs, fi:xed costs, average variablecosts, average fixed costs, and average total…

A: As posted multiple sub parts we are answering only first three sub parts kindly repost the…

Q: calculate the total product cost per unit under variable costing.

A: Total product cost per unit is the cost of the unit which has been incurred by the company in order…

Q: Assuming that direct labor is a variable cost, the primary difference between the absorption and…

A: Major difference between absorption and variable costing is fixed cost allocation across all units…

Q: Why might it be misleading to show the fixed costs on a per unit basis?

A: Fixed Costs are those costs that do not change in aggregate in relation to the level of production…

Q: Includes gross profit on the income statement. Absorption costing only Generally provides the most…

A: Introduction: Income statement: All incomes and expenses are shown in income statement. It tells the…

Q: What effect does an increase in volume have on—a. Unit fixed costs?

A: Fixed costs are those costs of business which remain fixed in total irrespective of change in volume…

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: Required: When compared to variable costing income, Gem's absorption costing income is

A: Solution:- Given, Inventory for Gem's sole product totaled = 6,000 units and 5,200 units…

Q: The product costs per unit under variable costing would be:

A: Variable costs are those costs that change with the change in the number of products manufactured by…

Q: Which of the following describes the behavior of the variable cost per unit?

A: The answer for the multiple choice question and relevant explanation are presented hereunder : What…

Q: Which of the following describes the behavior of total variable and total fixed costs when level of…

A: Different costs associated with production process are - Fixed cost and variable cost. For example:…

Q: If the units produced and unit sales are equal, which method would you expect to show the highernet…

A: Absorption costing:   Absorption costing is compulsory under Generally Accepted Accounting…

Q: When units produced equal units sold, how does operating income differ between variable costing and…

A: Definition: Absorption Costing: It is a method of cost accounting where all the costs are related to…

Q: Differences in operating income between variable costing and absorption costing are due solely to…

A: Absorption costing: It refers to the method of product costing in which the price of the product is…

Q: What effect does an increase in the activity level have on— a. Unit fixed costs? b. Unit variable…

A:

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…