Calculate absorption costing income and variable costing income. Construct and prepare an income statement for a calendar year.

Introduction

Note: Accounting requires specific steps that need to be executed in a sequence. The assessments in this course are presented in sequence and must be completed in order.

Businesses must track the costs of doing business and profits to plan for the future.

Instructions

Note: Accounting requires specific steps that need to be executed in a sequence. The assessments in this course are presented in sequence and must be completed in order.

Use the Variable Costing Conversion Template [XLSX] to complete this assessment.

Competencies Measured

By successfully completing this assessment, you will demonstrate your proficiency in the course competencies through the following assessment scoring guide criteria:

• Competency 2: Apply sound budgeting principles.
  • Calculate absorption costing income and variable costing income.
• Competency 4: Analyze financial statements.
  • Construct an income statement for each year using variable costing.
  • Prepare an income statement for a calendar year using variable costing.
• Competency 5: Communicate in a manner that is professional and consistent with expectations for professionals in the field of accounting.
  • Communicate quantitative information accurately and effectively.