General account is used for external reporting.a. Direct costingb. Variable costingc. The contribution margin approachd. Absorption costing

The correct answer is:d. Absorption costing Explanation:Absorption Costing:This method is required…

Answered: is used for external reporting. a.…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 2Q: When is an activity-based costing system better than a traditional allocation system?

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Similar questions

Absorption costing is also referred to as: A. direct costing B. marginal costing C. full costing D. variable costing
What advantage does the FIFO cost method have over the average cost method relative to providing information for cost control?
The ability to assign a cost directly to a cost object by means of a causal relationship is a. allocation b. traceability c. separability d. value chain process
What are the basic objectives in the use of standard costs?
Define and explain contribution margin ratio.
How is the primary focus of activity-based costing different from that of traditional allocation?
For the following activities and their associated resources, identify the following: (1) a cost driver, (2) flexible resources, and (3) committed resources. Also, label each resource as one of the following with respect to the cost driver: (a) variable and (b) fixed.
What is the primary difference between variable costing and absorption costing?
How are costs allocated in an ABC system?
Which statement is correct? A. Activity-based cost systems are less costly than traditional cost systems. B. Activity-based cost systems are easier to implement than traditional cost systems. C. Activity-based cost systems are more accurate than traditional cost systems. D. Activity-based cost systems provide the same data as traditional cost systems.
How does absorption costing differ from variable costing? When will absorption-costing operating income exceed variable-costing operating income?
Identify appropriate cost drivers for these cost pools: A. material cost pool B. machine cost pooi C. painting cost pool D. maintenance cost pool

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is used for external reporting. a. Direct costing b. Variable costing c. The contribution margin approach d. Absorption costing