B) Prepare an income statement according to the variable costing concept. C) What is the...
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Accounting
B Prepare an income statement according to the variable costing concept. C What is the reason for the difference in the amount of income from operations reported in a and b
Under theabsoption costingvariable costing? method, the fixed manufacturing cost included in the cost of goods sold is matched with the revenues. Under absoption costingvariable costing? all of the fixed manufacturing cost is deducted in the period in which it is incurred, regardless of the amount of inventory change. Thus, when inventory increases, the absoption costingvariable costing? income statement will have a higher income from operations than will the variable costing income statement.
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