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What is Absorption Costing Income Statement Analysis about?

The income statements show the revenues and costs of a company over 3 years using absorption costing. In year 1, the company had sales of £276,000 and net profit of £67,716. In year 2, sales increased to £368,000 and net profit was £101,162. While in year 3 sales decreased to £322,000, costs also reduced and net profit remained high at £78,313.

Author

Mak Puss

Language

EN