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Accounting Discussion - Variable Costing Basics.
There will be two parts to this assignment.
1. Explain the difference between variable and full costing.
2. Explain why income calculated under full absorption costing will be greater than income calculated under variable costing when production exceeds sales.
3. Explain how a manufacturing company can "bury" fixed manufacturing costs in ending inventory under full absorption costing.
4. If the fixed manufacturing overhead cost per unit under full costing is multiplied by the change in inventory between the beginning and ending of the period, what does the resulting number represent?
Please cite all references used for both assignments.
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