1. A higher proportion of fixed costs will increase the disparity between ab-
sorption unit product costs and the costs reported under variable cost-
ing. This will also have the effect of magnifying fluctuations in net oper-
ating income that occur under absorption costing as a consequence of
changes in inventories. (See the discussion in part 2 below.)
Proponents of absorption costing will make the same arguments as
before, as will the proponents of variable costing. However, the higher
proportion of fixed costs will increase the differences between reports
based on variable costing and those based on absorption costing. Con-
sequently, this issue becomes more important as the proportion of fixed
costs in the cost structure increases.
Bạn đang xem 1. - SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH07 VARIBLE COSSTING TOOL FOR MANAGEMENT