Absorption and Variable Costing Are Two Different Methods of Measuring

question 12

Essay

Absorption and variable costing are two different methods of measuring income and costing inventory.
Required:
A.Product costs are defined as costs associated with the manufacturing process.How does the operational definition of product cost differ between absorption costing and variable costing?
A.The sole difference between the two methods is that fixed manufacturing overhead costs are defined as a product cost under absorption costing and as a period cost under variable costing.
B.An absorption-costing income statement will report gross profit or gross margin whereas a variable-costing income statement will report contribution margin.What is the difference between these terms?
B.Gross profit (gross margin)is the difference between sales and cost of goods solD.Cost of goods sold includes variable and fixed manufacturing costs.Contribution margin,on the other hand,is the difference between sales and variable expenses,namely,variable cost of goods sold and variable operating expenses.Fixed costs are ignored when calculating the contribution margin.

Describe unstructured data and differentiate it from other data types in the context of object-oriented databases.

Grasp the definition and utility of database queries.

Recognize the importance and application of range checks in database fields.

Understand data redundancy, its implications, and how it differs from data normalization.

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Definitions:

Regression Equation

An equation that represents the relationship determined by regression analysis, predicting the dependent variable based on independent variables.

Dummy Variable

A variable used in regression analysis that assumes the value 0 or 1 to indicate the absence or presence of some categorical effect.

Independent Variable

A variable that is manipulated to determine its effect on a dependent variable within an experimental study.

3-ethyl-3-methylhexane

A branched alkane with the formula C8H18, having an ethyl and a methyl group on the third carbon of the hexane chain.