The Table That Follows Denotes Selected Characteristics of Absorption Costing

question 9

Essay

The table that follows denotes selected characteristics of absorption costing and/or variable costing.
$\begin{array} { | l | l | l | } \hline { \text { Characteristic } } & \text { Absorption Costing } & \text { Variable Costing } \\\hline \text { Product cost: } & & \\\hline \text { Direct materials } & & \\\hline \text { Direct labour } & & \\\hline \text { Variable manufacturing overhead } & & \\\hline \text { Fixed manufacturing overhead } & & \\\hline \text { Period cost: } & & \\\hline \text { Variable selling and administrative cost } & & \\\hline \text { Fixed selling and administrative cost } & & \\\hline \text { Fixed manufacturing overhead } & & \\\hline \text { Income statement disclosure/ andience: } & & \\\hline \text { Gross margin } & & \\\hline \text { Contribution margin } & & \\\hline \text { Lower net income when inventories rise } & & \\\hline \text { External financial-statement users } & & \\\hline\end{array}$ Required:
Evaluate each product-cost, period-cost, and income-statement/disclosure characteristic and determine whether it relates to absorption costing, variable costing, or both methods. Place an "X" in the proper column.

---

Definitions:

Baby Boomers

Individuals born approximately between 1946 and 1964, often associated with significant economic, political, and social changes in their lifetimes.

Generation X

The demographic cohort following the Baby Boomers and preceding Millennials, typically born between the early 1960s and late 1970s.

Generation Y

Also known as Millennials, this group includes individuals born between the early 1980s and the late 1990s to early 2000s, known for their familiarity with digital technology.

Psychological Elder Abuse

A form of elder mistreatment involving emotional or mental harm inflicted on an older person, often manifesting through manipulation, neglect, or verbal assault.