mgt404 gdb 1 SOLUTION FALL 2017

Dear VU Students, here you can read and download MGT404GDB No.1 Solution fall 2017. MGT404 GDB Opining Date 24 November 2017 and Closing Date 29 November 2017. GDB Total Marks:20.So, harry up Download the MGT404 GDB Solution File and Submit Your GDB Solution. Easily you can Download Solution file click the Download Button and Get GDB Solution File. Any Question for GDB Solutionso easily you can Contact me using Comment Box. If GDB Solution was helpful. Please Share It with your friends. You can also like our Facebookpage, subscribe YouTube channel and follow on Google+ for Latest Update.  
  
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the premise 

FitDat.com is a newly incorporated company that manufacturers a small battery-operated fitness monitor. This hand-held gadget sends data to its user’s smartphone during exercise. Virtually all of its sales are expected to be web-based. These days, its management accountant is studying the two famous costing methods - absorption costing and variable costing that the company can use to determine its product cost. Under absorption costing, all manufacturing costs, including fixed manufacturing overhead, are treated as product cost and stored in inventory until the inventory is sold. Under variable costing, fixed manufacturing overhead is not included in the cost of inventory. Here, fixed manufacturing overhead is treated as a period cost and is expensed during the period in which it is incurred. The company intends to employ such costing method which ensures true and fair reporting of its income in the financial statements.

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point of discussion 

  1. Which of the costing method with an increased inventory level would produce higher income? (2 Marks)
  2. Why in “a” above, the income would be increased? (3 Marks)
  3. Which of the costing method is consistent with cost-volume-profit analysis? (2 Marks)
  4. What would be the reason behind consistency discussed in “c” above? (3 Marks)

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