Asked by
Jessica Reyna
on Nov 13, 2024
Verified
If more units are sold than are produced in a period variable costing income will be greater than absorption costing income.
Variable Costing
A costing approach in which only variable manufacturing costs are product costs, and fixed manufacturing costs are period costs (expenses).
Absorption Costing
A costing approach in which all manufacturing costs are charged to the product.
Variable
An element, feature, or factor that is subject to change, often used in financial analysis, statistics, and scientific research.
- Examine the effects of sales volume on overall expenses, variable expenses, fixed expenses, and profit after tax.
Verified Answer
VP
Learning Objectives
- Examine the effects of sales volume on overall expenses, variable expenses, fixed expenses, and profit after tax.