Essay Questions
119. What costs are treated as product costs under the absorption costing method?
120. What costs are treated as product costs under the variable costing method?
121. How can the use of absorption costing result in overproduction?
122. When excess capacity exists, what is the minimum special order price a manager should accept to increase net income?
123. What are the benefits of using variable costing when striving to control costs? Are these benefits available under absorption costing?
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