question archive 3) The sum of AC income for the two years will not equal the sum of VC income for the 2 years in this example
3) The sum of AC income for the two years will not equal the sum of VC income for the 2 years in this example
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3) The sum of AC income for the two years will not equal the sum of VC income for the 2 years in this example. The sum of the AC income for the two years will be higher. Why is this the case? Explain in a sentence or two.
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Reason for such change is the treatment of variable manufacturing overheads based on number of units produced and variable selling & admin. Expenses based on number of units sold.
