costs assigned to units in inventory are typically lower under absorption costing than under vanable costina
The costs assigned to units in inventory are typically lower under absorption costing than
under vanable costina
TRUE
FALSE
Operating profits move in the same direction as sales when variable costing is used if
selling prices, the sales mix and the cost structure remain the same
TRUE
FALSE
Absorption costing is more compatible with cost-volume-profit analysis than is variable
costing.
TRUE
FALSE
Variable manufacturing
absorption and variable costing
TRUE
FALSE
Operating profit is affected by changes in production under both the variable costing and
absorption costing approaches
TRUE
FALSE
In a manufacturing company using absorption costing, the fixed costs associated with
idle production capacity are commonly included as part of the product cost.
TRUE
FALSE
In activity-based
TRUE
FALSE
The margin of safety can be defined as the amount by which sales can decrease before
losses are incurred by the company.
TRUE
FALSE
The break-even point can be calculated with the following formula: Total fixed expenses /
(Variable cost per unit Selling price per unit)
TRUE
FALSE
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