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2. The manager of Catfish Limited is not clear as to why the firm should use two different bases for the preparation of financial statements.
2. The manager of Catfish Limited is not clear as to why the firm should use two different bases for the preparation of financial statements. He is also concerned that the net income and stock valuations differ with the two methods. Write a well-formatted memo to the manager. This memo should: i. Explain any differences in stock valuation and net profit for 2021 ii. Give THREE arguments to support the uses of marginal costing iii. Give THREE arguments to support the uses of absorption costing iv. Explain why a firm might use both methods
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