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    Polk Company: Variable or Absorption Cost

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    I need assistance writing a paper of no more than 500 words after completing Exercise 19-17 in which you respond to the following questions:

    - In this case, would it be better to use the variable or absorption costing method, and why?
    - What are the benefits of the two methods?
    - Which method would lead to the best decision when a competitor is submitting a lower bid for your product?
    - Compute product cost and prepare an income statement under variable and absorption costing.

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    Solution Summary

    Compute for the product cost under variable and absorption costing methods. Prepare income statement schedule under variable and absorption costing methods.