• Would the CM approach better assist management in ensuring all costs are covered? Under absorption costing, FC would become inventoriable and thus buried when production exceeds sales. Conversely, under the CM approach, FC is treated as period costs, making it less likely to overstate profits. What are your thoughts on this topic?

the main difference between Absorption costing and Variable costing is the treatment of fixed manufacturing costs, if production exceeds sales with a corresponding increase in ending inventory, what will be the net effect under absorption costing?

•Explain the difference between variable and full costing.

•Explain why income calculated under full absorption costingwill be greater than income calculated under variable costing whenproduction exceeds sales.

•Explain how a manufacturing company can "bury" fixedmanufacturing costs in ending inventory under full absorptioncosting.

1.Explain the difference between variable and full costing.

2.Explain why income calculated under full absorption costingwill be greater than income calculated under variable costing whenproduction exceeds sales. Explain how a manufacturing company can"bury" fixed manufacturing costs in ending inventory under fullabsorption costing.

3.If the fixed manufacturing overhead cost per unit under fullcosting is multiplied by the change in inventory between thebeginning and ending of the period, what does the resulting numberrepresent?