BUSINESS ADMINISTRATION
ACCOUNTING FOR MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Company Ironic sells its products for a price of € 80. It is expected that 50, 000 products will be sold. The variable costs per unit are €10 per unit and the Total Fixed Costs are € 100, 000. Normal and actual production are 40, 000 units.Calculate the profit difference between direct costing and absorption costing
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Absorption Costing is higher with € 25, 000
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Absorption Costing is higher with € 20, 000
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Absorption Costing is lower with € 25, 000
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Absorption Costing is lower with € 20, 000
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Explanation:
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