Stultz Manufacturing Has the Following Information for the Years Ended

question 16

Essay

Stultz Manufacturing has the following information for the years ended December 31, 2012, and December 31, 2013:
The 2012 cost per unit was the same in year 2011.
Required:
1. Prepare the variable-cost and full-cost income statements for 2012 and 2013.
2. Prepare a reconciliation and explanation for the differences between full-cost and variable-cost operating income for both years.

---

Definitions:

Gini Coefficient

A measure of income inequality within a population, ranging from 0 (perfect equality) to 1 (perfect inequality).

Lorenz Curve

A graphical representation used to show the distribution of income or wealth within a society, depicting the proportion of total income earned by various segments of the population.

Income Inequality

The unequal distribution of household or individual income across the various participants in an economy.

Household Income

The combined gross income of all members of a household, typically measured over a set period of time, such as a month or a year.