cost accounting discussions

post 1

• Create a situation for determining performance evaluations and bonuses where absorption-costing operating income is used both to increase income and to influence performance measures in use.
• evaluate the benefits of variable costing in eliminating opportunities for adverse incentives that absorption costing can create, indicating how a company may leverage these benefits.

post 2 

• Justify the use of practical capacity over theoretical capacity in product costing in a manufacturing company with consistent excess capacity.
• Determine the influence fixed costs of capacity has on pricing decisions and customer response.