Question
(1) Why accrual basis accounting may create the overproduction incentive in the absorption costing but not in the variable costing method? (2) As an accountant,
(1) Why accrual basis accounting may create the overproduction incentive in the absorption costing but not in the variable costing method?
(2) As an accountant, what are your recommendations to the executives in terms of using the two methods in the company?
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Financial Accounting Reporting Analysis And Decision Making
Authors: Shirley Carlon, Rosina Mladenovic Mcalpine, Chrisann Palm, Lorena Mitrione, Ngaire Kirk, Lily Wong
5th Edition
0730313743, 978-0730313748
