Choose Right option please. with explain The underlying difference between absorption costing and variablecosting lies in the treatment of:A. direct labor.B. variable manufacturing overhead.C. fixed manufacturing overhead.D. variable selling and administrative expenses.

The correct answer is:C. fixed manufacturing overhead. Explanation:The key difference between…

Answered: The underlying difference between…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 3MC: Which is not a step in analyzing the cost driver for manufacturing overhead? A. Identify the cost B....

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Similar questions

In the variable costing income statement, how are the fixed manufacturing costs reported, and how are the fixed selling and administrative expenses reported?
Which of the following is not considered a product cost? A. direct materials B. direct labor C. indirect materials D. selling expense
What are the distinguishing characteristics of variable, fixed, and semivariable factory overhead costs?
How does absorption costing differ from variable costing? When will absorption-costing operating income exceed variable-costing operating income?
Overhead costs are the source of product cost distortions. Do you agree or disagree? Explain.
the underlying differnce between absorption costing and variable costing lies in the treatment of A. prime costs B. variable manufacturing overhead c. fixed manufacturing overhead d. fixed non-manufacturing overhead e. all the above
The primary difference between absorption and variable costing is that variable costing treats a. Only direct materials and direct labor as product cost. b. Direct materials, direct labor, the variable portion of manufacturing overhead, and an allocated portion of fixed manufacturing overhead as product costs. c. Only direct materials, direct labor, the variable portion of selling and administrative expenses as product cost. d. Only direct materials, direct labor, and the variable portion of manufacturing overhead as product costs.
The difference between marginal costing and absorption costing net income centres on how to account for O a. direct material costs O b. fixed manufacturing overhead costs O C. variable and fixed manufacturing overhead costs O d. variable manufacturing overhead costs
Under variable costing, which of the following are costs that can be inventoried Select one: O O a. variable manufacturing overhead b. fixed selling and administrative expense c. variable selling and administrative expense d. fixed manufacturing overhead
Please indicate which are product costs and which are period costs. Under Absorption Costing: Direct Materials are considered a Direct Labor is considered a Variable overhead is considered a Fixed overhead is considered a Under Variable Costing: Direct Materials are considered a Direct Labor is considered a Variable overhead is considered a Fixed overhead is considered a
Under variable costing, fixed manufacturing overhead is expensed at the time the units are produced. Under absorption costing, fixed manufacturing overhead is expensed at the time the units are sold. True or False True False
The primary difference between variable costing and absorption costing is in variable costing, fixed manufacturing overhead is a product cost. in absorption costing, fixed manufacturing overhead is a product cost. invariable costing, variable selling, and administrative costs are product costs. in absorption costing, fixed selling and administrative costs are product costs.

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The underlying difference between absorption costing and variable costing lies in the treatment of: A. direct labor. B. variable manufacturing overhead. C. fixed manufacturing overhead. D. variable selling and administrative expenses.