Why do you think GAAP requires absorption costing instead of variable costing?
Question:
Why do you think GAAP requires absorption costing instead of variable costing?
Generally Accepted Accounting Principles (GAAP) is the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC). While the SEC previously stated that it intends to move from U.S. GAAP to the International Financial Reporting Standards (IFRS), the...
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 75% (16 reviews)
GAAP is designed to report the full cost of inventory on the ba...View the full answer
Answered By
Ali Khawaja
my expertise are as follows: financial accounting : - journal entries - financial statements including balance sheet, profit & loss account, cash flow statement & statement of changes in equity -consolidated statement of financial position. -ratio analysis -depreciation methods -accounting concepts -understanding and application of all international financial reporting standards (ifrs) -international accounting standards (ias) -etc business analysis : -business strategy -strategic choices -business processes -e-business -e-marketing -project management -finance -hrm financial management : -project appraisal -capital budgeting -net present value (npv) -internal rate of return (irr) -net present value(npv) -payback period -strategic position -strategic choices -information technology -project management -finance -human resource management auditing: -internal audit -external audit -substantive procedures -analytic procedures -designing and assessment of internal controls -developing the flow charts & data flow diagrams -audit reports -engagement letter -materiality economics: -micro -macro -game theory -econometric -mathematical application in economics -empirical macroeconomics -international trade -international political economy -monetary theory and policy -public economics ,business law, and all regarding commerce
4.00+
1+ Reviews
10+ Question Solved
Related Book For
Accounting concepts and applications
ISBN: 978-0538745482
11th Edition
Authors: Albrecht Stice, Stice Swain
Question Posted:
Students also viewed these Managerial Accounting questions
-
Why do you think variable costing has also been called direct costing?
-
Why do you think the Common Law made it difficult to enter into contracts? What do you perceive the current trends to be? Based upon what? Why do you think that is the modern trend? Is it better to...
-
Why do you think the Common Law made it difficult to enter into contracts? What do you perceive the current trends to be? Based upon what? Why do you think that is the modern trend? Is it better to...
-
Suppose \(x\) is a linked-list Node. What is the effect of the following code fragment? \[x \cdot \text { next }=x \cdot \text { next } . \text { next; }\]
-
Listed in alphabetical order, the following selected items (in thousands) were taken from Sunrise Cruise Ltd.'s December 31 financial statements: Instructions (a) In each case, identify on the blank...
-
Begin by assuming that the storage system consists of a single 40 GB disk. a. Given this workload and storage system, what is the average service time? b. On average, what is the utilization of the...
-
Flint Company leased equipment to Land Company for a five-year period. Flint paid \(\$ 46,965\) for the equipment, its current carrying value (estimated useful life five years). The lease started on...
-
R. Santiago Co. uses special journals and a general journal. The following transactions occurred during May 2014. May 1 R. Santiago invested $40,000 cash in the business. 2 Sold merchandise to Lawrie...
-
Help please 1. Life Cycle analysis - Given an example of where you can apply life cycle analysis to a product. Have you ever thought about the entire life of a product before? 2. What effect will...
-
In all cases, a thermal equilibrium state or a steady state is assumed, depending on the application of voltage. Abrupt junction assumption, Application of Depletion Approximation In the NPN BJT of...
-
How does operating income between variable and absorption costing differ if the number of units in inventory increases during the year and the companys total fixed costs were the same this year as...
-
Using the following annual information, calculate inventory turnover for (1) Raw materials inventory, (2) Work-in-process inventory, and (3) Finished goodsinventory. $ 15,000 Beginning raw materials...
-
A system in unity feedback configuration has the loop transmittance \[ \mathrm{G}(s)=\frac{\mathrm{K}}{s(2 s+1)} \] Using frequency response techniques, do the following: (a) Find \(\mathrm{K}\) to...
-
You are the Human Resources Manager of Wydget Corporation, a small manufacturing firm. The employees of Wydget are not unionized. Because of difficult business conditions, the workers wages have not...
-
Your employer just asked you to lead the marketing department. During your first meeting with the marketing team, you ask to review the key performance indicators, or metrics from the past few...
-
I have a question for a very important interview about three things that I am passionate about and activities. I do that in my spare time I'm a single mom and I have sole custody of my daughter, so I...
-
A single crystal lies completely across a copper wire (1.0-mm diameter) that is being pulled in tension. A load of 1 kg is applied in the [1 0 1] direction. (a) What is the axial stress in the...
-
The government of Canada settled 25,000 government-sponsored Syrian refugees in Canada in a very short period of time ending in February, 2017. Often, these people were forced to leave their homes...
-
Refer to Vargas Products in E12-30A. Compute the IRR of each project and use this information to identify the better investment. Data From E12-30A:- Use the NPV method to determine whether Vargas...
-
For the following exercises, find the inverse of the function and graph both the function and its inverse. f(x) = 4 x 2 , x 0
-
Assume you are negotiating a new collective bargaining agreement in a league that has an expiring agreement. Research the key items for the negotiation and develop a strategy for CBA negotiations on...
-
Top managers of OHare Products, Inc., have asked for your help in comparing the companys profit performance and financial position with the average for the industry. The accountant has given you the...
-
You are evaluating two companies as possible investments. The two companies, which are similar in size, are commuter airlines that fl y passengers up and down the West Coast. All other available...
-
Financial statement data of Shawsworth Engineering include the following items: Requirements 1. Compute Shawsworths current ratio, debt ratio, and earnings per share. 2. Compute the three ratios...
-
When comparing a Section 529 savings plan with a Coverdell Education Savings Account, which statement is not correct? Question 7 options: 1. Contributions to a Section 529 plan may be state tax...
-
AC 0 ezto.mheducation.com 13e_ch15_final student - Fa23 SAMG 1200-22... G11. What is a 'proper promotional mix' - Google Sea... Chapter 14 Homework by Sunday, 11/12 i M Question 8-Chapter 14 Homework...
-
23 BUSM 1260-22 Applied Business Mathematics/Calculators ezto.mheducation.com M Question 1- Chapter 14 Homework by Sunday, 11/12 - Connect 4 Homework by Sunday, 11/12 ok nt rences Complete the...
Study smarter with the SolutionInn App