Nelson Company,which Has Only One Product,has Provided the Following Data

question 48

Essay

Nelson Company,which has only one product,has provided the following data concerning its most recent month of operations:
The company produces the same number of units every month,although the sales in units vary from month to month.The company's variable costs per unit and total fixed costs have been constant from month to month.
Required:
a)Prepare an income statement for the month using the contribution format and the variable costing method.
b)Prepare an income statement for the month using the absorption costing method.

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Definitions:

Stimulus Discrimination

The ability to distinguish between different stimuli, responding only to specific stimuli while ignoring others.

Higher-Order Conditioning

A conditioning process in which a stimulus that previously was neutral is paired with a conditioned stimulus to produce the same conditioned response, even in the absence of the original unconditioned stimulus.

Spontaneous Recovery

The return of a conditioned response that had previously been eliminated, following a period where the conditioned stimulus was not presented.

Extinction

In psychology, the gradual weakening and eventual disappearance of a learned response, often occurring when the reinforcement previously associated with the behavior is removed.