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Accounting
Absorption and Variable Costing: Please respond to one of the following:
Option 1
Create a situation for determining performance evaluations and bonuses where absorption-costing operating income is used both to increase income and to influence performance measures in use.
Option 2
Evaluate the benefits of variable costing in eliminating opportunities for adverse incentives that absorption costing can create, indicating how a company may leverage these benefits.
Option 3
Justify the use of practical capacity over theoretical capacity in product costing in a manufacturing company with consistent excess capacity. Determine the influence fixed costs of capacity has on pricing decisions and customer response.
during the year samuels company reported net income of 300000 including amortization of intangible assets of 66000
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for this cost volume profit scenario the variables aresales profit 25variable cost 15fixed cost 180contribution margin
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maffei company which has only one product has provided the following data concerning its most recent month of
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On October 1, 2013, Gordon Enterprises borrows $ 150,000 cash from a bank by signing a three year installment note bearing 10% interest.
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