Question
Variable and Absorption Costing are two alternative methods of determining product costs. Discuss why a company would choose variable costing over absorption costing. Include how
Variable and Absorption Costing are two alternative methods of determining product costs. Discuss why a company would choose variable costing over absorption costing. Include how the Income Statement would be different under each choice and whether the Balance Sheet Inventory amounts are modified as well. Choose a manufacturing company you are aware of and offer your conclusion as to which costing method would provide more informed accounting information for their users with details and examples. The company chosen should be listed within the Fortune 250.
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