Income under absorption costing will be higher than the income under variable costing when the costs of Group of answer choices Beginning inventory exceeds the ending inventory Units manufactured are less than the units sold during the period Units manufactured exceeds the units sold during the period Units manufactured are equal to the units sold during the period

Income under absorption costing will be higher than the income under variable costing when the costs of Group of answer choices Beginning inventory exceeds the ending inventory Units manufactured are less than the units sold during the period Units manufactured exceeds the units sold during the period Units manufactured are equal to the units sold during the period

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 20MC: Product costs under variable costing are typically: A. higher than under absorption costing B. lower...

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For which cost concept used in applying (he cost-plus, approach to product pricing are fixed manufacturing costs, fixed selling and administrative expenses, and desired profit allowed for in determining the markup? A. Total cost B. Product cost C. Variable cost D. Standard cost
Why are there objections to using absorption costing when segment reports of profitability are being prepared?
Income under absorption costing will be higher than the income under variable costing when the costs of Group of answer choices Beginning inventory exceeds the ending inventory Units manufactured are less than the units sold during the period Units manufactured exceeds the units sold during the period Units manufactured are equal to the units sold during the period
Income under absorption costing will be lower than the income under variable costing when the costs of Group of answer choices Units manufactured exceeds the units sold during the period Units manufactured are equal to the units sold during the period Units manufactured are less than the units sold during the period Beginning inventory exceeds the ending inventory
The inventory cost computed under absorption costing is ____ the inventory cost computed using variable costing. Group of answer choices half of thrice as much equal to greater than
Sunland Products manufactures and sells a variety of camping products. Recently the company opened a new factory to manufacture a deluxe portable cooking unit. Cost and sales data for the first month of operation are shown below: Beginning inventory Units produced Units sold Manufacturing costs Fixed overhead Variable overhead Direct labour Direct material Selling and administrative costs Fixed Variable 0 units 11,200 10,100 $100,800 $3 $12 $28 $207,100 per unit. per unit per unit $3 per unit sold The portable cooking unit sells for $110. Management is interested in the opening month's results and has asked for an income statement.
TRUE OR FALSE When units sold exceed, units produced, income under absorption costing is higher than income under variable costing.
When production exceeds sales,a. Ending inventory under variable costing will exceed ending inventory under absorption costingb. Ending inventory under absorption costing will exceed ending inventory under variable costing.c. Ending inventory under absorption costing will be equal to ending inventory under variable costing.d. Ending inventory under absorption costing either exceeds, be equal to, or be less 20 than ending inventory under variable costing.
Product costs under variable costing are typically: Group of answer choices A. higher than under absorption costing B. lower than under absorption costing C. the same as with absorption costing D. higher than absorption costing when inventory increases
What are these equations? c.Under absorption costing, what is the cost of goods sold? d.Under variable costing, what is the cost of goods sold? e.Under absorption costing, what is the operating income? f.Under variable costing, what is the operating income? g.Reconcile the difference in operating income under absorption costing versus variable costing.
Which condition would cause absorption-costing net income to be greater than variable-costing net income? A. Units sold exceeded units produced B. Units sold equaled units produced C. Units sold were less than units produced. D. Sales prices decreased
Which TWO of the following statements concerning marginal costing are TRUE? A. Closing inventories are valued at full production cost. B. Fixed costs are treated as a period cost and are charged in full to the income statement of the accounting period in which they are incurred. O.C. Marginal cost is the cost of a unit which would be avoided if that unit were not produced. OD. Contribution is calculated as sales revenue plus all variable costs.