Ch 8 ADM2341A VC-AC - Ch 8 Variable vs Absorption Costing...

Info iconThis preview shows pages 1–6. Sign up to view the full content.

View Full Document Right Arrow Icon
Ch 8 VC:AC Managerial Accounting ADM2341 1 Ch 8 Variable vs Absorption Costing and Segment Reporting Different Costs for different purposes
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Ch 8 VC:AC Managerial Accounting ADM2341 2 Variable classify costs by behaviour (VC vs FC) inventory contains variable production costs only (dm + dl + oh) also called “contribution” costing income a function of sales
Background image of page 2
Ch 8 VC:AC Managerial Accounting ADM2341 3 Absorption classify costs by function (manufacturing then selling and admin) inventory contains variable and fixed production costs income a function of sales and production
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Ch 8 VC:AC Managerial Accounting ADM2341 4 Variable Sales less V.COGS: BB +V.COGM -EB = V.COGS + VAR S/A Total VC = Contribution Margin -FIX±MNF -FIX±S/A =NI Absorption less COGS: +COGM COGS = Gross Margin -VAR S/A -FIX S/A NI
Background image of page 4
Ch 8 VC:AC Managerial Accounting ADM2341 5 RECONCILIATION of INCOME NI(AC) vs NI(VC): equals the difference in the change in fixed costs in inventory in
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 6
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 02/03/2010 for the course ADM ADM2341 taught by Professor Edden during the Winter '09 term at University of Ottawa.

Page1 / 12

Ch 8 ADM2341A VC-AC - Ch 8 Variable vs Absorption Costing...

This preview shows document pages 1 - 6. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online