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Exercise 3.16: Net income differences for Vivienne Corp. Absorption versus variable Homework Unanswered Continuing on with the same data from exercise 3.15, Vivienne Corp produced
Exercise 3.16: Net income differences for Vivienne Corp. Absorption versus variable Homework Unanswered Continuing on with the same data from exercise 3.15, Vivienne Corp produced another 7,500 units in 2019 but only sold 6,000 units. Assuming no other changes to costs and sales price, prepare the appropriate income statements for 2019 assuming they use (a) absorption costing, and (b) variable costing. Which costing method reports higher net income? Why is this the case? Exercise 3.16: Net income differences for Vivienne Corp. Absorption versus variable Homework Unanswered Continuing on with the same data from exercise 3.15, Vivienne Corp produced another 7,500 units in 2019 but only sold 6,000 units. Assuming no other changes to costs and sales price, prepare the appropriate income statements for 2019 assuming they use (a) absorption costing, and (b) variable costing. Which costing method reports higher net income? Why is this the case
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