When Reconciling Variable Costing and Absorption Costing Net Operating Income,fixed

question 67

True/False

When reconciling variable costing and absorption costing net operating income,fixed manufacturing overhead costs deferred in inventory under absorption costing should be added to variable costing net operating income to arrive at the absorption costing net operating income.

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Definitions:

Wage And Tax Statement

A document, often referred to as a W-2 form, issued by employers to employees detailing the employee's wages and taxes withheld during the year.

Voluntary Deductions

Employee-elected deductions from their payroll for benefits, contributions, or savings plans.

Salaries And Wages Payable

A liability account that records the amounts owed to employees for work performed that has not yet been paid.

Taxes Payable

Current liabilities representing the amount of taxes owed to governmental authorities that have not yet been paid.