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1.What is the basic difference between absorption costing and variable costing?

2.Explain how fixed manufacturing overhead costs are shifted from one period to another under absorption costing.

3.If the units produced exceed unit sales, which method would you expect to show the higher net operating income, variable costing or absorption costing? Why?

4.Distinguish between a traceable cost and a common cost. Give two examples of each.

100 words each