Synapse
⌘+K
Synapse
PulseExploreClubsResearchersJournals
Instagram
HomeClubsExplore
March 18, 2026The Accounting Review

The Effect of Cost-Volume-Profit Structure on Full and Direct Costing Net Income: A Generalized Approach.

View Full Paper
Ask AI
Bookmark
Share

Authors

DRDonald E. RickettsUniversity of MinnesotaCPCharles R. PurdyUniversity of Minnesota

Discussion

Loading...

Member takes

Implication

This analysis examines net income differences between full and direct costing based on cost-volume-profit structures, indicating important financial implications.

Key Points

  • This article aims to explore how cost-volume-profit (C-V-P) structures influence full and direct costing net income.
  • Identified key variables impacting the difference between absorption and direct costing net income.
  • Analyzed the effects of fixed costs and production versus sales volume discrepancies.
  • Normalized variables to assess the effects of various C-V-P structures.
  • Highlighted significant differences in net income based on the type of costing used.
  • Showed that the mix of manufacturing and nonmanufacturing fixed costs influenced net income variability.
  • Established a framework to compare the effects of different C-V-P structures on net income.

Cite This Study

Ricketts et al. (1974) studied this question.

synapsesocial.com/papers/69ba43f74e9516ffd37a5befhttps://doi.org/10.2308/tar-4515235
View Full Paper
Ask AI
Bookmark
Share

Also Consider

Synapse has enriched 5 closely related papers on similar clinical questions. Consider them for comparative context:

  1. 1Absorption versus Direct Costing: Income Reconciliation and Cost-Volume-Profit Analysis.1986
  2. 2Full and Direct Costing in Profit Variance Analysis.1986
  3. 3A Note on Cost-Volume-Profit Analysis and Price Elasticity.1975
  4. 4DIRECT COSTING--THE CASE AGAINST.1954
  5. 5A Simplified Graphical Display of Production and Sales Volume Effects on Absorption Costing Income.1979