True or False Sales volume is the only driver of operating income under absorption costing.
True or False
Sales volume is the only driver of operating income under absorption costing.
Homework Answers
|
False Cost driver is a unit or output which drives the change in the overall cost of the cost pool. Comment if you face any issues |
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True or False
Sales volume is the only driver of operating income under
absorption costing.
Net operating income under variable and absorption costing will generally: a. always be equal. b. never...
Net operating income under variable and absorption costing will generally: a. always be equal. b. never be equal. c. be equal only when production and sales are equal. d. be equal only when production exceeds sales.
(e) The net operating income (loss) under absorption costing is less than the net operating income...
(e) The net operating income (loss) under absorption costing is
less than the net operating income (loss) under variable costing in
Year 2 because: (You may select more than one answer.
Single-click the box with the question mark to produce a checkmark
for a correct answer and double click the box with the question
mark to empty the box for a wrong answer. Any boxes left with a
question mark will be automatically graded as
incorrect.)
Units were left over...
find net operating income (loss) for year 1 under absorption costing find net operating income (loss)...
find net operating income (loss) for year 1 under absorption
costing
find net operating income (loss) for year 2 under absorption
costing
find net operating income (loss) for year 1 under variable
costing
find net operating income (loss) for year 2 under variable
costing
area of your worksheet so that it А B с Chapter 6: Applying Excel Data $ 344 $ 146 Selling price per unit Manufacturing costs: Variable per unit produced: Direct materials Direct labor Variable manufacturing overhead...
(e) The net operating income (loss) under absorption costing is less than the net operating income...
(e)
The net operating income (loss) under absorption costing is less
than the net operating income (loss) under variable costing in Year
2 because (Select all that apply.):
3.
Make a note of the absorption costing net operating income
(loss) in Year 2.
At the end of Year 1, the company’s board of directors set a
target for Year 2 of net operating income of $70,000 under
absorption costing. If this target is met, a hefty bonus would...
9-23 Variable and absorption costing, sales, and operating-income changes.
Smart Safety, a three-year-old company, has been producing and selling a single type of bicycle helmet. Smart Safety uses standard costing. After reviewing the income statements for the first three years, Stuart Weil, president of Smart Safety, commented, “I was told by our accountants—and in fact, I have memorized—that our breakeven volume is 52,000 units. I was happy that we reached that sales goal in each of our first two years. But here’s the strange thing: In our first year,...
Selling and administrative costs are period costs under both absorption and variable costing. True False
Selling and administrative costs are period costs under both absorption and variable costing. True False
Question 21 (1 point) Operating income reported under absorption costing will generally exceed operating income reported...
Question 21 (1 point) Operating income reported under absorption costing will generally exceed operating income reported under variable costing for a given period in which of the following cases? If the variable manufacturing overhead exceeds the fixed manufacturing overhead. If production exceeds sales for that period. None of the options provided are correct. If production equals sales for that period. If sales exceed production for that period. w wwwwwwwwwwwwwwwwwwww wwwwwww Question 22 (1 point) The term "gross margin" for a...
BUSINESS SOLUTIONS Absorption Costing Income Statements Production volume 300 320 Sales volume - 300 Workstations workstations...
BUSINESS SOLUTIONS Absorption Costing Income Statements Production volume 300 320 Sales volume - 300 Workstations workstations workstations Sales Cost of goods sold Gross margin Selling general and administrative expenses Net income (loss) 0 $ 0 Under absorption costing, can the difference between production volume and sales volume affect the reported net income (loss)? margin 2. Complete the following income statements using variable costing. 320 workstations 300 workstations BUSINESS SOLUTIONS Variable Costing Income Statements 300 Production volume (units) workstations Sales volume...
A) What is the net operating income (loss) in Year 2 under absorption costing? B) At...
A) What is the net operating income (loss) in Year 2
under absorption costing?
B) At the end of Year 1, the company’s board of
directors set a target for Year 2 of net operating income of
$20,000 under absorption costing. If this target is met, a hefty
bonus would be paid to the CEO of the company. Keeping everything
else the same from above, change the units produced in Year 2 to
4,400 units.
What is the net operating...
Variable Costing and Absorption Costing - under the traditional costing approach, absorption costing, or full costing,...
Variable Costing and Absorption Costing - under the traditional costing approach, absorption costing, or full costing, products absorb all costs incurred to product them which can result in misleading product cost information for decision-making. Under variable costing only costs that change in total with changes in production level are included in product costs. The difference between the two costing methods is the exclusion of fixed overhead from product cost for variable costing. Post your response and ideas of the following...
(e) The net operating income (loss) under absorption costing is
less than the net operating income (loss) under variable costing in
Year 2 because: (You may select more than one answer.
Single-click the box with the question mark to produce a checkmark
for a correct answer and double click the box with the question
mark to empty the box for a wrong answer. Any boxes left with a
question mark will be automatically graded as
incorrect.)
Units were left over...
find net operating income (loss) for year 1 under absorption
costing
find net operating income (loss) for year 2 under absorption
costing
find net operating income (loss) for year 1 under variable
costing
find net operating income (loss) for year 2 under variable
costing
area of your worksheet so that it А B с Chapter 6: Applying Excel Data $ 344 $ 146 Selling price per unit Manufacturing costs: Variable per unit produced: Direct materials Direct labor Variable manufacturing overhead...
(e)
The net operating income (loss) under absorption costing is less
than the net operating income (loss) under variable costing in Year
2 because (Select all that apply.):
3.
Make a note of the absorption costing net operating income
(loss) in Year 2.
At the end of Year 1, the company’s board of directors set a
target for Year 2 of net operating income of $70,000 under
absorption costing. If this target is met, a hefty bonus would...
Question 21 (1 point) Operating income reported under absorption costing will generally exceed operating income reported under variable costing for a given period in which of the following cases? If the variable manufacturing overhead exceeds the fixed manufacturing overhead. If production exceeds sales for that period. None of the options provided are correct. If production equals sales for that period. If sales exceed production for that period. w wwwwwwwwwwwwwwwwwwww wwwwwww Question 22 (1 point) The term "gross margin" for a...
BUSINESS SOLUTIONS Absorption Costing Income Statements Production volume 300 320 Sales volume - 300 Workstations workstations workstations Sales Cost of goods sold Gross margin Selling general and administrative expenses Net income (loss) 0 $ 0 Under absorption costing, can the difference between production volume and sales volume affect the reported net income (loss)? margin 2. Complete the following income statements using variable costing. 320 workstations 300 workstations BUSINESS SOLUTIONS Variable Costing Income Statements 300 Production volume (units) workstations Sales volume...
A) What is the net operating income (loss) in Year 2
under absorption costing?
B) At the end of Year 1, the company’s board of
directors set a target for Year 2 of net operating income of
$20,000 under absorption costing. If this target is met, a hefty
bonus would be paid to the CEO of the company. Keeping everything
else the same from above, change the units produced in Year 2 to
4,400 units.
What is the net operating...
Variable Costing and Absorption Costing - under the traditional costing approach, absorption costing, or full costing, products absorb all costs incurred to product them which can result in misleading product cost information for decision-making. Under variable costing only costs that change in total with changes in production level are included in product costs. The difference between the two costing methods is the exclusion of fixed overhead from product cost for variable costing. Post your response and ideas of the following...
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