Unformatted text preview: 5. Explain the advantages and limitations of both the variable and absorption costing methods. 6. Explain how the use of JIT reduces the difference in net income reported under the variable and absorption costing methods. 7. Explain how the choice of denominator level can affect reported income and inventory costs under absorption costing. (Do P7-16 assuming the denominator level is 10,700 units plus supplement from Horngren text, 9-22, 9-23, 9-27, 9-28, 9-29) Demonstration and Assignment Material: E7-1, E7-2, E7-3, E7-4, E7-5, E7-6, P7-9, P7-10, P7-11, P7-12, P7-13, P7-16, P7-17. RF 06/04...
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- Winter '12
- Income Statement, Net Income, Generally Accepted Accounting Principles