What are the two types of alternative income statements

Answer each question 200 words.

What are the two types of alternative income statements? What are some examples of how alternative income statements are used in decision-making?

What is cost behavior and how does it impact a financial analysis? What processes does your company or a previous employer use to analyze cost behavior?

 

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There are two types of alternative income statements: absorption costing and variable costing formats (Horngren, Bhimani, Datar, Foster & Horngren, 2002). Absorption costing is a method of costing in which all production costs are treated as product costs without taking into account if they are fixed or variable. In this system of costing, a product cost comprises all the direct material costs, labor costs; and fixed and variable overheads. In variable costing, all variable expenses are first deducted from revenues to produce……………………….

APA

486 words