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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Similar questions

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 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 is true? * A. The traditional approach to costing uses many different cost drivers. B. Costs that are indirect to products are by definition traceable to directly to products. C. Costs that are indirect to products are traceable to some activity. D. All of the above statements are true.
What is the key difference between Absorption Costing and Marginal Costing? A Absorption Costing treats Manufacturing Overhead as a period cost. B Marginal Costing treats Fixed Manufacturing Overhead as a period cost. C Absorption Costing only considers variable costs to calculate net income. D Marginal Costing only considers variable costs to calculate net income.
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
Under variable costing system only those costs of production that vary (variable) with production are considered in the calculationof the cost of goods manufactured. TRUE OR FALSE?
Marginal Costing refers to product costing methods that exclude ________ from product costs a) Fixed costs b) Variable cost c) Production cost d) Period cost
Explain the difference between the cost classifications, ‘production prime costs’ and ‘indirect production overheads’, and discuss the cost accounting applications of the differences used for traditional absorption costing purposes [dont give chatgpt answer]
19) Which of the following is false? Material on a job is classifies as__________. A) direct or indirect cost Fixed or variable cost Selling or administrative expense Period or product 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?
Which is not a step in analyzing the cost driver for manufacturing overhead? A. Identify the cost B. identify non-value-added costs C. analyze the effect on manufacturing overhead D. identify the correlation between the potential driver and manufacturing overhead

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