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5:50
YouTube
Edspira
Absorption Costing Profit vs Variable Costing Profit
This video summarizes the ways in which operating profit (or loss) differs based on whether Absorption Costing or Variable Costing is used. If the company produces more units than it sells, then operating profit will be higher under Absorption Costing (compared to Variable Costing). This is because inventory increases and, with Absorption ...
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