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.

Subject - account  Please help me.  Thankyou.

For external financial reporting which costing method is required

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19) For internal decision-making purposes, many companies use the income statement using the approach. For extemal reporting, most companies use the income statement using the approach. A) full costing: variable costing C) absorption; contribution B) contribution; absorption D) absorption; absorption

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.

company You are a management accountant of EON and Brothers Ltd., a manufacturing that produces two products simultaneously in one of their production plants. You are asked to produce a management report on costing techniques. This company follows a traditional approach to costing and absorbs production overhead using machine hours. The company's policy is to add a 50% markup on the unit cost to obtain the selling price. The relevant information is given below: EON and Brothers Ltd. produces two similar products called Alfa and Beta. Total Overheads = £155,000 Machine Hours = 58980 hrs Product Alfa Beta Production Units 2,580 5,100 Material Cost per unit £31 £51 Labour Cost per unit £21 £17 Machine Hours per unit 11 16 After discussing with all the important people of the production plant you have allocated the overhead costs as mentioned below: % Overheads Set up Costs 30 Inspections 40 Materials Handling 30 Cost Pools are as mentioned below: Alfa Beta Total Setups 400 65 465…