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Managerial Accounting: Provide income statements in both variable costing and absorption costing formats for an initial period

by | Nov 3, 2021 | Business Finance - Accounting | 0 comments

by | Nov 3, 2021 | Business Finance - Accounting | 0 comments

Managerial Accounting: Provide income statements in both variable costing and absorption costing formats for an initial period

Question:
Provide income statements in both variable costing and absorption costing formats for an initial period and its successive period in a case where all manufactured products within the two periods are sold by the end of the second period, but number of units sold in the first period is less than the number of units manufactured in this period. What is the interesting observation in comparing the two types of income statements? Explain your example in detail and provide in-text citations.
Please explain your work in detail and provide in-text citations. Include the initial situation and the initial assumptions in your answer. 

Note:
1. Please create the income statements on excel, and then copy to the word document for the submission with the written explanations.
2. Please find the example of the activity in attachment. 
3. Need to explain the initial assumptions and the calculations in detail. 
4. Need at least 3 peer-reviewed article as the reference, and needs to provide in-text citations. 
5. Please find the grading rubric attached and go over it before doing the activity.
6. Please find the related PPTs and textbook attached.

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