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A consistent accounting method must be used to report income and taxes for any given tax year. The two accounting methods used by taxpayers in reporting income are the accrual method and the cash method. Cash accounting is an accounting method that records transactions when cash or equivalent items change hands. Cash accounting is one…
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Over the year, the company sold 50,000 units and produced 60,000 units, with a unit selling price of $100 per unit. As long as the company could correctly and accurately calculate the cost, there is a high chance that the company could make the correct pricing for its products. Some people may view absorption costing…
