Answer and Explanation:
The computation of each part is to be shown in the attachment. The one statement is of final values and the other one is of formula sheet.
This one applied for all the things which need to be find out
Kindly find the attachment below:
We use the RATE formula for determining the rate of return and the same is to be considered
Answer:
The answers are:
A) Consulting revenue should be listed below the debited account as it is credited.
C) Accounts payable is not involved in this transaction.
D) The Consulting revenue account should be indented, as it is credited.
E) The correct account that should be debited is the Accounts receivable account.
Explanation:
Answer:
Differences in Operating Incomes Under Absorption Costing and Variable Costing:
The 2020 operating income under absorption costing is greater than the operating income under variable costing because
the ending inventory has carried over some fixed manufacturing costs, making the cost of goods sold less than under variable costing.
Explanation:
The differences in the operating incomes obtained under variable costing and absorption costing are due to the fixed manufacturing costs that are included in the ending inventory and carried forward to the next accounting period while the ending inventory under variable costing does not include any fixed manufacturing costs. Absorption costing is based on full costing system but, variable costing does not include the full costs.
