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Fixed costs are $50 per unit and variable costs are $125 per unit.Production was 130,000 units,while sales were 125,000 units.Determine (a)whether variable costing income from operations is less than or greater than absorption costing income from operations,and (b)the difference in variable costing and absorption costing income from operations.
Cash Receipts
The collection of money (cash, checks, electronic transfers) received by a business from its operational activities.
Cash Disbursements
Payments made by a business in the course of its operations, typically tracked within cash flow statements.
Direct Labor Budget
A financial plan detailing the cost associated with direct labor required for a specific period, often used in manufacturing settings.
Manufacturer
A company or individual that makes goods for sale using raw materials and components.
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