Question 1

Under absorption costing,the cost of finished goods includes direct materials,direct labor,and all factory overhead.

Accepted Answer

A) True 
 B)False

Question 2

For a period during which the quantity of product manufactured equals the quantity sold,income from operations reported under absorption costing will equal the income from operations reported under variable costing.

Accepted Answer

A) True 
 B)False

Question 3

Contribution margin reporting can be beneficial for analyzing which of the following?

Accepted Answer

A)   sales personnel
B)   products
C)   sales territory
D)   all of the aboveE) A) and D)
F) All of the above

Question 4

Fixed costs are $50 per unit and variable costs are $125 per unit.Production was 130,000 units,while sales were 125,000 units.Determine (a)whether variable costing income from operations is less than or greater than absorption costing income from operations,and (b)the difference in variable costing and absorption costing income from operations.

Accepted Answer

The answer of Fixed costs are $50 per unit and...

Question 5

In variable costing,fixed costs do not become part of the cost of goods manufactured,but are considered an expense of the period.

Accepted Answer

A) True 
 B)False

Question 6

On what effects does contribution margin analysis focus?

Accepted Answer

A)   the quantity factor
B)   the unit cost factor
C)   the unit sales price factor
D)   all of the aboveE) B) and C)
F) C) and D)

Question 7

Fixed factory overhead costs are included as part of the cost of products manufactured under the absorption costing concept.

Accepted Answer

A) True 
 B)False

Question 8

For a period during which the quantity of product manufactured was less than the quantity sold,income from operations reported under absorption costing will be larger than income from operations reported under variable costing.

Accepted Answer

A) True 
 B)False

Question 9

For a period during which the quantity of product manufactured was less than the quantity sold,income from operations reported under absorption costing will be smaller than income from operations reported under variable costing.

Accepted Answer

A) True 
 B)False

Question 10

In which of the following types of firms would it be appropriate to prepare contribution margin reporting and analysis?

Accepted Answer

A)   boat manufacturing
B)   a chain of beauty salons
C)   home building
D)   all of the aboveE) B) and C)
F) None of the above

Question 11

The amount of income under absorption costing will be less than the amount of income under variable costing when units manufactured:

Accepted Answer

A)   exceed units sold
B)   equal units sold
C)   are less than units sold
D)   are equal to or greater than units soldE) None of the above
F) All of the above

Exam 20: Variable Costing for Management Analysis

For a period during which the quantity of product manufactured equals the quantity sold,income from operations reported under absorption costing will equal the income from operations reported under variable costing.

Correct Answer
verified

Contribution margin reporting can be beneficial for analyzing which of the following?

Correct Answer
verified

On what effects does contribution margin analysis focus?

Correct Answer
verified

For a period during which the quantity of product manufactured was less than the quantity sold,income from operations reported under absorption costing will be smaller than income from operations reported under variable costing.

Correct Answer
verified

Correct Answer
verified

In which of the following types of firms would it be appropriate to prepare contribution margin reporting and analysis?

Correct Answer
verified

Under absorption costing,the cost of finished goods includes direct materials,direct labor,and all factory overhead.

Correct Answer
verified

For a period during which the quantity of product manufactured was less than the quantity sold,income from operations reported under absorption costing will be larger than income from operations reported under variable costing.

Correct Answer
verified

Fixed factory overhead costs are included as part of the cost of products manufactured under the absorption costing concept.

Correct Answer
verified

The amount of income under absorption costing will be less than the amount of income under variable costing when units manufactured:

Correct Answer
verified

In variable costing,fixed costs do not become part of the cost of goods manufactured,but are considered an expense of the period.

Correct Answer
verified

Exam 20: Variable Costing for Management Analysis

For a period during which the quantity of product manufactured equals the quantity sold,income from operations reported under absorption costing will equal the income from operations reported under variable costing.

Correct AnswerverifiedShow Answer

Contribution margin reporting can be beneficial for analyzing which of the following?

Correct AnswerverifiedShow Answer

On what effects does contribution margin analysis focus?

Correct AnswerverifiedShow Answer

For a period during which the quantity of product manufactured was less than the quantity sold,income from operations reported under absorption costing will be smaller than income from operations reported under variable costing.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In which of the following types of firms would it be appropriate to prepare contribution margin reporting and analysis?

Correct AnswerverifiedShow Answer

Under absorption costing,the cost of finished goods includes direct materials,direct labor,and all factory overhead.

Correct AnswerverifiedShow Answer

For a period during which the quantity of product manufactured was less than the quantity sold,income from operations reported under absorption costing will be larger than income from operations reported under variable costing.

Correct AnswerverifiedShow Answer

Fixed factory overhead costs are included as part of the cost of products manufactured under the absorption costing concept.

Correct AnswerverifiedShow Answer

The amount of income under absorption costing will be less than the amount of income under variable costing when units manufactured:

Correct AnswerverifiedShow Answer

In variable costing,fixed costs do not become part of the cost of goods manufactured,but are considered an expense of the period.

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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