Variable costing income be greater for the supplier

Assignment Help Financial Accounting

Reference no: EM13863719

A supplier of aircraft parts to an aircraft manufacturer has noticed an increase in inventory. As a result of this, will absorption costing or variable costing income be greater for the supplier? Explain why?

Reference no: EM13863719

Questions Cloud

What is the companys Basic EPS : For the year ended 12/31/2013, a company reported Net Income of $100,000. On 1/1/2013, the company had 20,000 common shares outstanding and 20,000 preferred shares outstanding. What is the company’s Basic EPS for 2013?

Revenue recognition-using accrual basis of accounting : Revenue recognition: using the accrual basis of accounting and follows THE U.S GAAP. indicate the amount of revenue the firm recognizes during the months of february, march, and april. Collects $800 cash from a customer during March for custom- made ..

Machine differential cost : Lucena Corporation purchased a machine 7 years ago for $357,000 when it launched product X05K. Unfortunately, this machine has broken down and cannot be repaired. In making the decision to buy the model 280 machine rather than the model 360 machine, ..

What are the advantages and disadvantages of budgeting : Budgets are very important both for planning and control in business. What are the advantages and disadvantages of budgeting.

Variable costing income be greater for the supplier : A supplier of aircraft parts to an aircraft manufacturer has noticed an increase in inventory. As a result of this, will absorption costing or variable costing income be greater for the supplier? Explain why?

Additional inventory to ensure against running out inventory : Should a company purchase additional inventory to ensure against running out of inventory? Agree or disagree?

What would be the companys cost of capital : A company has $6,000,000 in debt and $17,000,000 in total assets. If the debt carries an interest rate of 9% and the stockholders are demanding a rate of return of 13%, what would be the company's cost of capital?

What is the balance in its common stock account after split : A company has 360,000 shares authorized, 200,000 shares issued, and 100,000 shares outstanding. The par value of its stock is $1 per share. The company does a 2-for-1 stock split. What is the balance in its Common Stock account after the split?

Debit to finished goods inventory to record completion : On April 9 of the current year, Job XX4 was completed. The job cost sheet showed a total of $4,000 in direct materials and $6,000 in direct labor at a rate of $20 per direct labor hour. Plantwide overhead is applied at $30 per direct labor hour. The ..

User Account

All Pages