Business Finance Homework Help

Assignment 1 :

Please answer each of the following questions in detail. Provide in-text citations and

include examples whenever applicable.

1. Is a variable costing income statement applicable to service operations? If so, provide a

hypothetical example of variable costing income statements in a service operation.

a. Explain your example in detail and provide in-text citations.

2. Explain the difference between variable costing and absorption costing income statements.

a. Provide a hypothetical income statement in both formats in which the number of

units sold is different from the number of units manufactured.

b. Explain the contrast between the two formats.

Assignment #2

● Provide income statements in both variable costing and absorption costing formats

for an initial period and its successive period in a case in which all manufactured

products within the two periods are sold by the end of the second period, but the

number of units sold in the first period is less than the number of units

manufactured in this period.

● What is the interesting observation in comparing the two types of income

statements?

● Explain your example in detail and provide in-text citations.

● Please explain your work in detail and provide in-text citations.

● Include the initial situation and the initial assumptions in your answer.