cost accounting discussions 3380127 2
post 1
- Create a situation for determining performance evaluations and bonuses where absorption-costing operating income is used both to increase income and to influence performance measures in use.
- evaluate the benefits of variable costing in eliminating opportunities for adverse incentives that absorption costing can create, indicating how a company may leverage these benefits.
post 2
- Justify the use of practical capacity over theoretical capacity in product costing in a manufacturing company with consistent excess capacity.
- Determine the influence fixed costs of capacity has on pricing decisions and customer response.
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