Answer of this account questions wanted The amount of income under absorption costing willbe less than the amount of income under variablecosting when units are manufactured:a. exceed units soldb. equal units soldc. are equal to or greater than units soldd. are less than units sold

The correct answer is:d. are less than units sold Explanation:Under absorption costing, fixed…

Answered: The amount of income under absorption…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 1MC: The amount of a units sales price that helps to cover fixed expenses is its ____________________. A....

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Similar questions

The amount of a units sales price that helps to cover fixed expenses is its ____________________. A. contribution margin B. profit C. variable cost D. stepped cost
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
TRUE OR FALSE When units sold exceed, units produced, income under absorption costing is higher than income under variable costing.
General Account questions anser wanted
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
Gross margin is to absorption costing as which of the following is too variable costing? A. Gross Profit B. Contribution Margin C. Net Income D. Product Margin
Atlanta Systems produces two different products, Product A, which sells for $450 per unit, and Product B, which sells for $800 per unit, using three different activities: Design, which uses Engineering Hours as an activity driver; Machining, which uses machine hours as an activity driver; and Inspection, which uses number of batches as an activity driver. The cost of each activity and usage of the activity drivers are as follows: Usage by Product A Usage by Product B Cost Design (Engineering Hours) Machining (Machine Hours) Inspection (Batches) $ 190,000 $1,800,000 $ 108 142 2,160 2,840 160,000 42 38 8 Atlanta manufactures 12,500 units of Product A and 10,200 units of Product B per month. Each unit of Product A uses $100 of direct materials and $45 of direct labor, while each unit of Product B uşes $140 of direct materials and $75 of direct labor.
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.
The equation for total costs (Y) is: Y = a+ bX In this equation, “a” represents: Net income Cost of goods sold Total fixed costs The level of activity (e.g., the number of units produced) Total variable costs Variable cost per unit of X Total revenue
Costs treated as product costs under direct costing are: A. Variable production cost only B. All variable and fixed manufacturing costs C. Prime costs only D. All variable costs
Under variable costing, all fixed manufacturing costs are treated as a a. product cost included in the cost of goods manufactured. b. product cost included in the cost of ending inventory. c. period expense deducted from manufacturing margin. d. period expense deducted from contribution margin.
An input whose cost is determined by the quantity of input consumed is a A. Fixed cost B. Variable cost C. Step cost D. Variable cost with fixed component

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The amount of income under absorption costing will be less than the amount of income under variable costing when units are manufactured: a. exceed units sold b. equal units sold c. are equal to or greater than units sold d. are less than units sold