Assignment: Business Finance Discussions
Discussion 1
Discuss Focus Groups, Depth Interviewing, Observation and advantages/disadvantages of each. Your answers to this discussion must be substantive with academic references to validate your responses.
Discussion 2
If production is greater than sales, absorption costing net income will be greater than variable costing net income. Absorption costing net income is higher because some of the fixed manufacturing overhead costs will be deferred in the inventory account until the products are sold.
- Explain how variable costing system costing is used to calculate the cost of goods manufactured. Please give example.
- If fixed manufacturing overhead costs are released from inventory under absorption costing, what does this tell you about the level of production in relation to the level of sales?
Question
- Explain how absorption costing is used to calculate the cost of goods manufactured. Please give example.
- How does absorption costing reduce or eliminate the difference in reported net operating income between absorption and variable costing?