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Variable Costing Income Statement The following data were adapted from a recent income statement of The Bluth Company: a. Based on the data given, prepare
Variable Costing Income Statement The following data were adapted from a recent income statement of The Bluth Company: a. Based on the data given, prepare a variable costing income statement for Bluth, assuming that the company maintained constant inventory levels during the period. b. If the Bluth company reduced its inventories during the period, what impact would that have on the operating income determined under absorption costing? If the Bluth company reduced its inventories during the period, then the cost of products sold would Thus, the total fixed costs of products sold on the absorption costing income statement would be. fixed costs allocated to the beginning inventories , and the operating income would be
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