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Dafna1 [17]
3 years ago
7

Why variable costing and absorption costing net operating incomes may not be the same

Business
1 answer:
kramer3 years ago
5 0

Answer:

When units produced are greater than units sold, i.e., units in inventory increase, absorption income is greater than variable costing income because absorption costing defers a portion of fixed manufacturing costs in finished goods inventory.

<h2>Please mark me as brainliest</h2>

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<h3>What is the return on investment?</h3>
  • Return on investment (ROI) or return on costs (ROC) is a ratio of net income to investment over time (costs resulting from an investment of some resources at a point in time).
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Know more about return on investment here:

brainly.com/question/15726451

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