In class, we discussed the differences between a contribution income statement versus the traditional approach (absorption which is gaap). there is no difference in operating income between the two: • if it is a merchandising company since all cost of goods sold are variable. • manufacturing company when the units produced are the same as the units sold. however, the operating income will be different for a manufacturing company when the units produced do not equal the units sold. if a manufacturing company sells a lot of inventory that was produced in a previous year, the fixed manufacturing overhead associated with the inventory that was on the balance sheet will be expensed under the traditional approach and under the contribution margin approach the fixed manufacturing overhead with the units sold was expensed in the previous year since fixed expenses are expensed when incurred. therefore, based on the previous paragraph, when inventory levels decrease, under which approach will show a higher operating income?
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Business, 22.06.2019 04:40
What is ur favorite song and by who i know dis is a random question
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Business, 22.06.2019 16:30
:; )write a paragraph of two to three sentences and describe what will happen to a society that does not have a productive workforce?
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Business, 22.06.2019 19:10
Greenway industries is a major multinational conglomerate. its business units compete in a range of industries, including home appliances, pharmaceuticals, commercial real estate, and plastics manufacturing. although its largest business unit, which produces kitchen appliances, is among the most profitable in the industry, it generates only 35 percent of the company's revenues. which of the following is most likely true of greenway's stock price? a. it is valued at less than the sum of its individual business units. b. it is valued at greater than the sum of individual business units. c. it is valued at the exact sum of individual business units. d. it is consistently lower than the industry average.it is valued at greater than the sum of individual business units.
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Business, 22.06.2019 19:40
Lauer corporation uses the periodic inventory system and has provided the following information about one of its laptop computers: date transaction number of units cost per unit 1/1 beginning inventory 210 $ 910 5/5 purchase 310 $ 1,010 8/10 purchase 410 $ 1,110 10/15 purchase 255 $ 1,160 during the year, lauer sold 1,025 laptop computers. what was cost of goods sold using the lifo cost flow assumption?
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In class, we discussed the differences between a contribution income statement versus the traditiona...
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