Which of the following statements about variable costing is true?
Which of the following statements about variable costing is true?
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Consider the following statements about variable costing. Which of the following are true? The accounting standards...
Consider the following statements about variable costing. Which of the following are true? The accounting standards do not permit variable costing to be used for internal reporting (i.e., reports that are circulated only amongst employees who work for a particular organisation) Variable costing treats all variable costs (i.e., variable manufacturing and variable non-manufacturing costs) as inventoriable costs By lowering production of output (while holding the output price, volume sold and fixed cost constant), an organization that uses variable costing will...
Which of the following costs is classified as a period cost under variable costing? O a....
Which of the following costs is classified as a period cost under variable costing? O a. Fixed manufacturing overhead O b. Variable manufacturing overhead O c. The cost of direct materials O d. The cost of direct labor Which of the following is true of a fixed cost? O a. Fixed costs in total vary in direct proportion to changes in output within the relevant range. O b. The per unit fixed cost increases with an increase in the level...
QUESTION 1 Which of the following is not true about the variable costing and absorption costing...
QUESTION 1 Which of the following is not true about the variable costing and absorption costing methods? Absorption costing treats fixed costs as period costs while variable costing treats it as a product cost. Absorption costing allocates all manufacturing costs as product costs while variable costing only uses direct manufacturing costs. Variable costing and absorption costing both treat selling and administrative costs as period costs. Variable costing is designed to capture only variable overhead costs while absorption costing's meant to...
1)Which of the following statements is true? A. Average fixed cost equals total fixed cost divided...
1)Which of the following statements is true? A. Average fixed cost equals total fixed cost divided by total output. B. Average total cost always falls as output increases. C. Average fixed cost equals average total cost plus average variable cost. D. Average variable cost is always greater than average fixed cost. 2) As output increases, average fixed cost A. remains constant. B. always decreases. C. decreases, then increases. D. increases, then decreases. 3) Average total cost minus average variable cost...
Consider the following comments about absorption- and variable-costing income statements: I. A variable-costing income statement discloses...
Consider the following comments about absorption- and variable-costing income statements: I. A variable-costing income statement discloses a firm's contribution margin. II. Cost of goods sold on an absorption-costing income statement includes fixed costs. III. The amount of variable selling and administrative cost is the same on absorption- and variable-costing income statements. Which of the above statements is (are) true? I only. II only. I and II. II and III. I, II, and III.
Identify the true statement about variable costing. a. It treats fixed manufacturing overhead as a period...
Identify the true statement about variable costing. a. It treats fixed manufacturing overhead as a period cost. b. It is the most acceptable product-costing method for external reporting, c. It assigns all manufacturing costs to the product. Od. It treats fixed selling overhead as a product cost. blem #3 of 12 The following data relates to Alpha Company. Units in beginning inventory Units produced 24,000 Units sold ($250 per unit) 20,000 Variable costs per unit: Direct materials Direct labor Variable...
Which of the following statements is true regarding variable costing? Multiple Choice It is a traditional...
Which of the following statements is true regarding variable costing? Multiple Choice It is a traditional costing approach. It makes it easier to manipulate earnings with changes in production levels. Only manufacturing costs that change in total with changes in production level are included in product costs. It treats overhead in the same manner as absorption costing. It is not permitted to be used for managerial reporting.
Which of the following statements is true of absorption costing? a. It is used only for...
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
Which of the following statements is true about the difference in operating income between variable costing...
Which of the following statements is true about the difference in operating income between variable costing and absorption costing if the number of units in work-in- process and finished goods inventories increase? A) There will be no difference in net income. O B) Operating income computed using variable costing will be higher. c) The difference in operating income cannot be determined from the information given D) Operating income computed using variable costing will be lower.
Identify which of the following statements is true about ideal gas behavior in a closed container....
Identify which of the following statements is true about ideal gas behavior in a closed container. Select the correct answer below: If the temperature increases while the volume remains the same, the pressure also increases. If the temperature increases while the pressure stays the same, the volume decreases. If the pressure increases while the volume stays the same, the temperature decreases. If the volume increases while the temperature stays the same, the pressure also increases.
Which of the following costs is classified as a period cost under variable costing? O a. Fixed manufacturing overhead O b. Variable manufacturing overhead O c. The cost of direct materials O d. The cost of direct labor Which of the following is true of a fixed cost? O a. Fixed costs in total vary in direct proportion to changes in output within the relevant range. O b. The per unit fixed cost increases with an increase in the level...
QUESTION 1 Which of the following is not true about the variable costing and absorption costing methods? Absorption costing treats fixed costs as period costs while variable costing treats it as a product cost. Absorption costing allocates all manufacturing costs as product costs while variable costing only uses direct manufacturing costs. Variable costing and absorption costing both treat selling and administrative costs as period costs. Variable costing is designed to capture only variable overhead costs while absorption costing's meant to...
Identify the true statement about variable costing. a. It treats fixed manufacturing overhead as a period cost. b. It is the most acceptable product-costing method for external reporting, c. It assigns all manufacturing costs to the product. Od. It treats fixed selling overhead as a product cost. blem #3 of 12 The following data relates to Alpha Company. Units in beginning inventory Units produced 24,000 Units sold ($250 per unit) 20,000 Variable costs per unit: Direct materials Direct labor Variable...
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
Which of the following statements is true about the difference in operating income between variable costing and absorption costing if the number of units in work-in- process and finished goods inventories increase? A) There will be no difference in net income. O B) Operating income computed using variable costing will be higher. c) The difference in operating income cannot be determined from the information given D) Operating income computed using variable costing will be lower.
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