Reference no: EM13183619
Evaluating Absorption and Variable Costing as Alternative Costing Methods
The questions below pertain to two different scenarios involving a manufacturing company. In each scenario, the cost structure of the company is constant from year to year. Selling prices, unit variable costs, and total fixed costs are the same in every year. However, unit sales and/or unit production levels may vary from year to year.
Required:
![620_What was the relation between unit sales1.png](https://secure.expertsmind.com/CMSImages/620_What%20was%20the%20relation%20between%20unit%20sales1.png)
• a. Were unit sales constant from year to year? Explain.
• b. What was the relation between unit sales and unit production levels in each year? For each year, indicate whether inventories grew or shrank.
• 2. Consider the following data for scenario B:
![620_What was the relation between unit sales1.png](https://secure.expertsmind.com/CMSImages/620_What%20was%20the%20relation%20between%20unit%20sales1.png)
• a. Were unit sales constant from year to year? Explain.
• b. What was the relation between unit sales and unit production levels in each year? For each year, indicate whether inventories grew or shrank.
• 3. Given the patterns of net operating income in scenarios A and B above, which costing method, variable costing or absorption costing, do you believe provides a better reflection of economic reality? Explain.
State what is the equivalent dose
: A lab rat weighs 265g and absorbs 1.68x10^10 beta decay particles, each with ernegy of 2.20x10^-13 J. If relative biological effectiness is 0.75, what is the equivalent dose?
|
Sketch a cube and how many vertices does it have
: Sketch a cube. How many vertices does it have? How many edges? How many faces? Mark four vertices of the cube that are also vertices of a regular tetrahedron.
|
State the law of diminishing marginal utility
: produce the product at the lowest variable cost and sell as many as you can at the highest acceptable price. produce the product at the lowest fixed cost and sell as many as you can at highest acceptable price in the marketc. produce the product at ..
|
State and specify the hybrid orbitals that overlap
: Draw a Lewis structure for each of the following compounds. Specify the hybrid orbitals that overlap to form each bond. Then label each bond as a pi or sigma bond
|
Relation between unit sales and unit production
: What was the relation between unit sales and unit production levels in each year? For each year, indicate whether inventories grew or shrank.
|
Define have a bunch of pennies and dimes
: How many dimes do you need to buy as much candy as possible? How much should all these dimes weigh? How many pieces of candy could you buy? How much would this candy weigh? How many pieces of candy could you buy with twice as many dimes?
|
Variable costing income statement - reconciliation
: Reconcile any difference between the net operating income on your variable costing income statement and the net operating income on the absorption costing income statement above
|
Write a report addressing a quantitative analysis project
: Write a report addressing a quantitative analysis (QA) project. Select a business of interest and develop QA best practices that can be developed and implemented to increase revenues and/or to decrease costs. Please provide at least three mathe..
|
State what is the concentration of calcium if the carbonate
: The solid calcium carbonate is placed in water. It reaches equilibrium and has a solubility product constant of 4.95 x 10-9. What is the concentration of calcium if the carbonate concentration
|