Variable costing option. answer carefully. (general account) All of the following statements are true aboutvariable costing except: [02]a) Material costs are included in product costs.b) Selling and administrative costs are not includedin product costs.c) Fixed costs are included in product costs.d) Direct labor is included in product costs.e) Is not GAAP approved.

All of the Following Statements Are True About Variable Costing ExceptVariable Costing…

Answered: All of the following statements are…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 8MC: Which of the following is not considered a product cost? A. direct materials B. direct labor C....

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Under absorption costing, which of the following costs would not be included in finished goods inventory? a.direct labor cost b.direct materials cost c.variable and fixed selling and administrative expenses d.variable and fixed factory overhead cost
Which of the following is NOT true ? a. The salary of the factory manager is considered to be an indirect cost of producing one unit of product. b. An indirect cost cannot be easily traced to a particular cost object. c. The classification of a cost as direct or indirect does not depend on the cost object. d. A direct cost can be easily traced to a particular cost object.
Which of the following statements are false regarding Activity-Based Costing? Select one: A. Non-manufacturing costs are not necessary to include when calculating the profitability of each product. B. Costs are allocated based on a pre-determined overhead rate. C. Transitioning from traditional costing methods to Activity-Based Costing can be complicated and costly. D. Activity-Based Costing follows the same basic calculation methods as traditional costing approaches. E. None of the above OO O
Which of the following statements is true? A. In a standard costing system, standard costs can only be used for cost control. B. In a standard costing system, standard costs can only be used for product costing. C. In a standard costing system, standard costs are used for both cost control and product costing. D. In a normal costing system, standard costs are used for cost control, and normal costs are used for product costing.
Which of the following statement is false? O The only difference between absorption costing and variable costing is howthe variable MOH is treated. O A traditional income statement uses absorption costing, where both variableand fixed manufacturing costs are included when calculating the productcost. O For external financial reporting purposes, GAP requires the traditionalformat income statement. O For external financial reporting purposes, companies need to classify theircosts as product costs or period costs following GAAP.
Which of the following line items will not be found in the absorption costing income statement? Group of answer choices Variable manufacturing and non-manufacturing costs Contribution margin Gross profit Fixed manufacturing costs
Which of the following statements pertain to variable costing? a. This method must be used for external financial reporting. b. Fixed manufacturing overhead is attached to each unit produced. c. The income statement not does disclose a company's contribution margin. d. Variable manufacturing overhead becomes part of a unit's cost. e. None of the other answers are correct.
Which of the following statements about manufacturing costs is incorrect? a. Manufacturing costs can be subdivided into direct manufacturing costs and indirect manufacturing costs. b. Direct materials are only those materials that can be easily associated with the finished product. c. Indirect manufacturing costs are lumped into one category called manufacturing overhead. d. Selling costs and administrative costs are manufacturing costs.
Which of following is not correct about normal costing? Select one: a. Predetermined rate is used to apply direct manufacturing costs b. Product cost does not include selling and administrative expenses c Product cost includes the applied indirect manufacturing cost d. Actual direct labor cost is traced to jobs e. Product cost includes the traced actual direct materials
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.
Marginal Costing refers to product costing methods that exclude ________ from product costs a) Fixed costs b) Variable cost c) Production cost d) Period cost
In what way do the cost of production summaries in Chapter 6, prepared using the weighted average cost method, differ from the cost of production summaries presented in Chapter 5? What is the reason for this difference?

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