Chapter 7 videos
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When the number of units produced is greater than the number of units sold, variable costing net operating income will be ________.
less than absorption costing net operating income
Which of the following is a common mistake made by companies when assigning costs to segments?
They assign the costs of the corporate headquarters buildings to segments because the segments must cover those costs.
The difference between absorption costing net operating income and variable costing net operating income can be explained by the way these two methods account for ________.
fixed overhead costs
Absorption costing income statements ignore ________.
variable and fixed cost distinctions
