The difference in net income reported under direct costing versus reported under absorption costing is calculated based on the increase or decrease in the units available for sale.
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Q27: Opportunity costs are calculated as the difference
Q28: Manufacturing margin less the sum of variable
Q29: When inventories increase,the direct costing income statement
Q31: If the finished goods inventory decreases during
Q32: If the finished goods inventory increases during
Q33: Segment managers can never control fixed costs.
Q33: When inventories decrease,the absorption costing income statement
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