Differentiate Between a Need and a Motive

question 70

Essay

Differentiate between a need and a motive.

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Definitions:

Absorption Costing

An accounting method that includes all manufacturing costs (fixed and variable) in the cost of a product.

Operating Income

Income generated from regular business operations, excluding deductions of interest and taxes.

Variable Costing

A costing method that includes only variable production costs (materials, labor, and overhead) in product costs, treating fixed costs as period costs.

Variable Costing

An accounting method that includes only variable production costs in the cost of goods sold and treats fixed overhead expenses as period costs.