Which group tends to be negatively affected by eminent domain laws?
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Under variable costing, the company's net operating income for the year would be:
$ higher than under absorption costing
$ lower than under absorption costing
$ higher than under absorption costing
$ lower than under absorption costing
Units in ending inventory = Units in beginning inventory + Units produced - Units sold=
Fixed manufacturing overhead per unit = Fixed manufacturing overhead ÷ Units produced=
Manufacturing overhead deferred in (released from) inventory = Fixed manufacturing overhead in ending inventory - Fixed manufacturing overhead in beginning inventory =
Therefore, variable costing net operating income will be $ lower than absorption costing net operating income.
Operating income (EBIT), also known as earnings before interest and tax, is a measurement of a company's profit from routine operations, excluding interest and tax.
Net operating income, operating profit, or net operating profit are additional names for EBIT.
NOI is a crucial comparative figure and profitability metric used only for assets of commercial real estate that generate revenue. By accounting rules, NOI differs from net profit or actual profitability.
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