Consider the following income statements for Nero Company:

a)Identify which income statement is prepared using each of the following costing methods: absorption costing, variable costing, and throughput costing.
b)For each costing method, identify one assumption associated with its use.
c)Explain why Nero Company might produce all three types of income statements for the same time period.

Question

Consider the following income statements for Nero Company:
  
a)Identify which income statement is prepared using each of the following costing methods: absorption costing, variable costing, and throughput costing.
b)For each costing method, identify one assumption associated with its use.
c)Explain why Nero Company might produce all three types of income statements for the same time period.

Quizplus · Accepted Answer

The Answer of Consider the following income statements for Nero Company:
  
a)Identify which income statement is prepared using each of the following costing methods: absorption costing, variable costing, and throughput costing.
b)For each costing method, identify one assumption associated with its use.
c)Explain why Nero Company might produce all three types of income statements for the same time period.

Consider the Following Income Statements for Nero Company