Well im stuck in the middle so ill give you to reasons
why i think they shouldnt be able to:
cuz they might wanna open it just as a scam and might try scamming and/or harming others
why i think they should be able to:
if they have a great idea and can prove its not a scam then im all for it ppl should be able to share and give their idea's to the world no matter howw far fetched they may seem
also ur question requiers an opinion so it should be what YOU think not just what others think :) in this type of question it would be best to go with ur own answer cuz there is no right or wrong anyways have a nice day :)
Answer:A.They can harm consumers by fixing prices.
Answer:
There will be a difference in the income .
Absorption costing income will be lower as it transfers all the fixed costs to the ending inventory.
Variable costing income will be higher as it does not transfer the fixed costs to the ending inventory.
The difference will be of $ 104000
Explanation:
Increase in units 8000
Variable Fixed
Unit manufacturing costs of the period $24.00 $10.00
Unit operating expenses of the period 8.00 3.00
Total Unit Costs $ 32.00 $ 13.00
The net operating income under variable costing for the year will be $ 13* 8000= $ 104000 Lower than the net operating income under absorption costing. This is because the all fixed costs will be treated as period cost rather than product costs.
In variable costing the ending inventory will be $104000 lower than the ending inventory under absorption costing because the fixed costs will not be allocated to products.
Under variable costing, the units in the ending inventory will be costed at $32 each.Under absorption costing, the units in the ending inventory will be costed at $32+ $ 13= $ 45 each.
