ch 7 quiz

If an income statement is prepared as an internal report, under which of the following methods would the term gross margin most likely appear?   Question 10 options:   a)  Both absorption costing and variable costing.   b)  Absorption costing but not variable costing.   c)  Variable costing but not absorption costing.   d)  Neither variable costing nor absorption costing

Match each phrase that follows with the term it describes.

1. Multiple-Choice Question - FIFO When using FIFO, A) Identical costs go to the balance sheet and the income statement. B) Management uses average costs to assign to the balance sheet and the income statement. C) Older costs go to the income statement; newer costs go to the balance sheet. D) Older costs go to the balance sheet; newer costs go to the income statement. Explain for the answer chosen please.

2. Consider the following statements about absorption costing and variable costing: Variable costing is consistent with contribution reporting and cost-volume-profit analysis. Absorption costing must be used for external financial reporting. A number of companies use both absorption costing and variable costing. Which of the above statements is (are) True? Group of answer choices a. I, II and III. b. II only c. I and II d. III only e. I only.

For external financial reporting which costing method is required

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For external financial reporting, which costing method is required? a) Variable costing b) Standard costing c) Direct costing d) Absorption costing answer this

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MCQ

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Listed below are nine technical accounting terms introduced in this chapter:Variable costs Relevant range Contribution marginBreak-even point Fixed costs Semivariable costsEconomies of scale Sales mix Unit contribution marginEach of the following statements may (or may not) describe one of these technical terms. For each statement, indicate the accounting term described, or answer “None” if the statement does not cor-rectly describe any of the terms. a. The level of sales at which revenue exactly equals costs and expenses.b. Costs that remain unchanged despite changes in sales volume.c. The span over which output is likely to vary and assumptions about cost behavior generallyremain valid.d. Sales revenue less variable costs and expenses.e. Unit sales price minus variable cost per unit.f. The reduction in unit cost achieved from a higher level of output.g. Costs that respond to changes in sales volume by less than a proportionate amount.h. Operating income less variable costs.

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Which statement is TRUE? An absorption costing income statement calculates gross profit; a variable costing income statement calculates contribution margin.   Both variable costing and absorption costing income statements calculate contribution margin.   A variable costing income statement calculates gross profit; an absorption costing income statement calculates contribution margin.   Both variable costing and absorption costing income statements calculate gross profit.   I DON'T KNOW YET

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Which of the following statements is true? (You may select more than one answer.)a. A common cost is one type of direct cost.b. A sunk cost is usually a differential cost.c. Opportunity costs are not usually recorded in the accounts of an organization.d. A particular cost may be direct or indirect depending on the cost object.

Following GAAP, the income statement issued to investors and creditors must OA. be prepared in the contribution margin format OB. be prepared using variable costing OC. show the value of contribution margin OD. be prepared in the traditional format

For external financial reporting, which costing method is required? a) Variable costing b) Standard costing c) Direct costing d) Absorption costing need help

Which method is required?

Question:Financial Account Which one of the following is an advantage of using variable costing? a. Variable costing complies with the US Internal Revenue Code. b. Variable costing complies with generally accepted accounting principles. c. Variable costing makes cost-volume relationships more easily apparent. d. Variable costing is most relevant to long-run pricing strategies.

Which type of income statements, Contribution Format or Traditional Format should be used to identify relevant costs? Please provide explanation for your answer. Then provide an example including two income statements based on absorption and variable costing, respectively, to support your explanation.

1. What is a segment of an organization? Give a few examples of segments of Walmart Corporation. 2. What costs are assigned to a segment under the contribution approach? 3. Distinguish between a traceable fixed cost and a common fixed cost. 4. Explain how the contribution margin is different from the segment margin. 5. Why aren't common fixed costs allocated to segments under the contribution approach?

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7.    Which of the following statement is false?         Multiple Choice   a)The contribution margin income statement format separates costs according to cost behaviour.   b)Fixed manufacturing overhead is treated as a period cost under absorption costing method.   c)Fixed manufacturing overhead is treated as a product cost under absorption costing method.   d)Variable costing method is more useful than absorption costing approach in internal and managerial decision-making.   e)The absorption costing approach is used in external financial reporting.