LO 6-1

Explain how variable costing differs from absorption costing and compute unit product costs under each method.

LO 6-2

Prepare income statements using both variable and absorption costing.

LO 6-3

Reconcile variable costing and absorption costing net operating incomes and explain why the two amounts differ.

LO 6-4

Prepare a segmented income statement that differentiates traceable fixed costs from common fixed costs and use it to make decisions.

LO 6-5

Compute companywide and segment break-even points for a company with traceable fixed costs.

LO 6-6

(Appendix 6A) Prepare an income statement using super-variable costing and reconcile this approach with variable costing.