ACC 561 Costing Methods Paper1 Would it be better to use the variable or absorption costing method, and why

# ACC 561 Costing Methods Paper1 Would it be better to use the variable or absorption costing method, and why

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ACC 561 Costing Methods Paper1-- Would it be better to use the variable or absorption costing method, and why

Costing Methods Paper

ACC/561

Costing Methods Paper

Would it be better to use the variable or absorption costing method, and why? In this case it would be more favorable to use the absorption method because with this method, the company only incorporates the overhead that is allocated to the number of units sold which is 81,400. The variable method calculates fixed overhead as a period expense which is calculated based off the 93,300 units that were produced but only if the absorption method is used. With the absorption method, it only calculates fixed overhead based off the 81,400 units that were sold. This helps provide leadership with a clear picture of the company's...

ACC 561
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Excerpt from file: ACC561CostingMethodsPaper1Woulditbe bettertousethevariableorabsorptioncostingmethod,andwhy CostingMethodsPaper ACC/561 CostingMethodsPaper Woulditbebettertousethevariableorabsorptioncostingmethod,andwhy?Inthiscaseit wouldbemorefavorabletousetheabsorptionmethodbecausewiththismethod,the...

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