1.Factory A and Factory B adopt absorption cost method in cost accounting. The absorption cost method emphasizes the contribution of production links to enterprise profits. Under the absorption cost method, fixed manufacturing costs also belong to products and flow with products, so the cost burden of products sold in the current period is exactly the same as that of products not sold at the end of the period. In the case of a certain sales volume, the higher the output, the higher the profit. In this case, a factory had a sluggish sales in 2004 and a large inventory backlog, but the production volume was more than that in 2005, resulting in the phenomenon that the profit of the enterprise in 2004 was higher than that in 2005. The situation in factory B is similar to that in factory A. ..

2. Because the profit of the enterprise is ultimately realized through the sales process, the enterprise should pay attention to the sales process, so the variable cost method is more in line with the enterprise's goal. If the variable cost method is used, the net profit of a factory in 2004 is 232 000, and in 2005 it is 739 000. Factory B made a profit of 90,000 yuan in 2004 and 50,000 yuan in 2005. Therefore, according to the production and marketing situation of pharmaceutical enterprises, variable cost method can accurately reflect the operating conditions of enterprises.