Accounting Question

Answer to the questions ( No plagiarism) Include Citations

1. What is cost-volume-profit analysis? What are its underlying assumptions and what would you do if assumptions are not met?
2. How would you compare variable costing and absorption costing using a hypothetical example?

Do research and discuss cost behavior analysis from the company that you work for currently or from a company in your own country? What did you learn in your research? Costing Assignment – CLO 1, CLO 3 ( No plagiarism must be detected)Based on the content covered in Week 2 and Chapters 18 and 19 of the Wild, J., & Shaw, K. (2022) text, students learned about cost behavior, cost-volume-profit analysis, and variable costing. Students should address the following:Describe how use of absorption costing in determining income can lead to overproduction and a buildup of inventory. Explain how variable costing can avoid this same problem.Apply your knowledge of absorption costing and variable costing to solve the following problem:Sims Company, a manufacturer of tablet computers, began operations on January 1, 2017. Its cost and sales information for this year follows.A. Prepare an income statement for the year using variable costing.B. Prepare an income statement for the year using absorption costing.C. Under what circumstance(s) is reported income identical under both absorption costing and variable costing?Paper should be 3-5 pages including the calculations and the income statements in A and B.