MKT 300 Chapter Notes -Total Absorption Costing, Throughput Accounting, Gross Margin

• School: Ryerson University
• Department: Marketing
• Course: MKT 300
• Professor: Margaret Buckby

Document Summary

Prepare absorption and variable costing income statements and reconcile the resulting net. Lo2 discuss the factors that affect the choice of production volume measures for allocating fixed overhead. Lo3 inventory balances, and evaluate the impact of inventory on income. Prepare throughput costing income statement and evaluate absorption, variable, and. Prepare absorption and variable costing income statements considering beginning. These learning objectives (lo1 through lo4) are cross-referenced in the textbook to individual exercises and problems. The three methods are similar because they assign some costs to inventory as product costs, and expense other costs as period costs. The three methods differ in the categories that are used for product and period costs. Absorption costing allocates all production costs, both fixed and variable, to units as product costs so cost of goods sold and inventory on the balance sheet include fixed manufacturing costs.