Question
absorption and variable costing when managers report higher operation income under absorptionn costing, it means production is more than sales. part of the fixed manufacture
absorption and variable costing
"when managers report higher operation income under absorptionn costing, it means production is more than sales. part of the fixed manufacture overhead costs remains in the closing inventory. The positive is it will crease the asset value and higher profit performance compare to variable costing, the share price could go up in short term. The negative is that there are may some problems with sales, why manufacture produce more than sales, what 's the reasons beneath it, need to find out."
what do you disagree on this statement?
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