Answered: exceeded the units produced, then…

exceeded the units produced, then income under direct costing will be higher than absorption costing income. A• True False B• True True

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

I. In throughput costing, using SD cost, all variances including direct labor variances must be closed to Cost of sales if the said variances are immaterial.

II. When units sold exceeded the units produced, then income under direct costing will be higher than absorption costing income.

A• True False

B• True True

C• False True

D• False False

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