Question
The following information is for LaPlanche Industries Inc.: East West Sales volume (units): Product XX 45,000 38,000 Product YY 60,000 50,000 Sales Price: Product XX
The following information is for LaPlanche Industries Inc.:
| East | West | |
| Sales volume (units): | ||
| Product XX | 45,000 | 38,000 |
| Product YY | 60,000 | 50,000 |
| Sales Price: | ||
| Product XX | $700 | $660 |
| Product YY | $728 | $720 |
| Variable cost per unit: | ||
| Product XX | $336 | $336 |
| Product YY | $360 | $360 |
If a company is planning for long-term production, which costing method will be most appropriate?
Absorption costing or Variable costing?
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Intermediate Accounting
Authors: kieso, weygandt and warfield.
IFRS Edition
978-1118443965, 1118800532, 9781118800539, 978-0470873991
