Option D is the answer | ||
Variable costing is a costing system where only the variable costs are assigned to the inventories and all the other costs are expensed. This method is not accepted for external reporting purposes |
Which type of costing system can only be used for internal financial reporting because it is...
Which of the following statements is true of absorption costing?a. It is used only for internal reporting purposes.b. It assigns all manufacturing costs to the product.c. It treats fixed selling overhead as a product cost.d. It treats fixed manufacturing overhead as a period cost.Determine the value of ending inventory under variable costing.a. $ 1,050,000b. $ 570,000c. $ 690,000d. $ 750,000Determine the cost of goods sold under absorption costing.a. $ 360,000b. $ 500,000c. $ 400,000d. $ 540,000
(9 You can use Variable Costing in financial statement preparation under GAAP for external reporting purposes. True False
Chapter 5 Discussion Topic As stated in the textbook, "absorption costing is required by GAAP and must be used whenever a company provides financial statements to individuals outside the company" (Sawyers, Jackson, & Jenkins, 2013). If absorption costing is required by GAAP, why would a company use variable costing for internal purposes?
Activity-based costing, or ABC, is a costing method that managers can use for internal cost reporting and decision making. While ABC isn't allowed for external financial reporting, companies may find it useful to enact an ABC system to more effectively analyze cost data. ABC systems excel at being able to assign costs to products that are manufactured and supported by many different types of activities. Question is, would this be very expensive? And, is there a lot of training involved?
Which costing system is often used to calculate customer profitablity? Multiple Choice 00:54:24 0 Absorption costing 0 Marginal costing. Oro ) O Activity-based cost O Variable costing
Which of the following is true? A) For internal reporting purposes, the parent company does not have an option other than the complete equity method. B) For internal reporting purposes, the parent uses the same equity method that is used for external reporting purposes. C) For internal reporting purposes, when the parent uses the cost method or the complete equity method, the resulting consolidated financial statements are identical. D) For internal reporting purposes, the parent must use the complete equity...
Assignment Questions: 1. One of the differences between Managerial Accounting and Financial Accounting is reporting flexibility. Financial reporting is restricted by Generally Accepted Accounting Principles whereas reporting in Managerial Accounting has fewer rules. a) Why is it permissible to violate Generally Accepted Accounting Principles when preparing reports used strictly by company management? b) Should external users always have the same information as internal users? Explain. 2. The United States uses accounting standards developed by the Financial Accounting Standards Board (FASB)...
Which is a method used to determine the Internal Rate of Return, O A Computer Solution, OB. all of the choices given OC. Trial & Error OD. Direct solution
Sierra Company incurs the following costs to produce and sell a single product. $ Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expenses Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses 11 6 3 6 $ $ $ 90,750 290,000 During the last year, 30,250 units were produced and 26,000 units were sold. The Finished Goods inventory account at the end of the year shows a balance of $85,000...
10 5-2,5-3 THE -2 Identifying Internal Controls over Financial Reporting Erasing has a system of internal control with the following procedures. Match the procedure to the corresponding internal control principle Procedure Bernal Coro Principle 1. The treasurer signs checks. A. Establish responsibility 2. The treasurer is not allowed to make bank B. Segregate duties deposits. C. Restrict access 3. The company's checks are prenumbered. D. Document procedures 4. Unused checks are stored in the vault. E. Independently verify 5. A...