Question
absorption costing net operating income may not agree with the net operating income calculated for cvp analysis due to the way in which blank is handled in absorption costing. multiple choice question. fixed manufacturing overhead fixed selling and administrative expense direct labor cost variable manufacturing overhead
Answer
Fixed manufacturing overhead.
- Q: What is absorption costing? A: Absorption costing is a method of accounting for all costs associated with producing and selling a product.
- Q: What is CVP analysis? A: CVP analysis stands for cost-volume-profit analysis and is a tool used to analyze how changes in sales volume, cost, and price affect a company's profits.
- Q: What is the reason for the disagreement in net operating income between absorption costing and CVP analysis? A: The disagreement may be due to the way in which fixed manufacturing overhead is handled in absorption costing.
- Q: Which of the following is the way in which fixed manufacturing overhead is handled in absorption costing that may cause disagreement in net operating income? A: Fixed manufacturing overhead.