Absorption Costing Archives

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Explain criteria to accept or reject investment projects based on net present value method.

Posted on February 8, 2023February 8, 2023 by Shady

Assignment Question(s): Q1. Differentiate between Variable and Absorption costing with a suitable numerical example and explain what would be the changes in Net Operating Income under both the costing methods. Answer Q2. ABC prepares budgets for the quarter ending June 30. Sales in units: April 20,000, May 50,000, June 30,000, July 25,000. Selling price is […]

What is the difference between the product cost and period cost? Give some examples for each type.

Posted on September 26, 2022 by Shady

Accounting Q1. What is the difference between the product cost and period cost? Give some examples for each type [2 marks] Answer: Q 2. What do you mean by Variable and Absorption Costing? Explain both with suitable example. [2 marks] Answer: Q3. In cost accounting, direct costs are easily and economically traced to cost object. […]

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