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Which of the following is correct concerning variable vs absorption costing?

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Which of the following is correct concerning variable vs absorption costing?

Which of the following is correct concerning variable vs absorption costing?
A) Absorption costing income statement classifies fixed costs as period costs.
B) The absorption costing income statement combines costs by cost behaviour.
C) Absorption costing income statements need to differentiate between variable and fixed costs.
D) The difference in operating income between the two approaches is captured by the difference between fixed manufacturing costs in ending inventory minus fixed manufacturing costs in opening inventory.
E) The difference in operating income between the two approaches is captured by the difference between fixed manufacturing costs in ending inventory minus variable manufacturing costs in ending inventory.

Textbook

Cost Accounting: A Managerial Emphasis, Canadian Edition

Cost Accounting: A Managerial Emphasis, Canadian Edition

Edition: 7^th

Authors: Horngren, Datar, Rajan, Beaubien

Read 130 times

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