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?
When might activity-based costing be preferred over using a relative amount of product sales in allocating selling and administrative expenses to products?
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
Selling and administrative expenses are considered to be: a. A period cost under variable costing b. A product cost under variable costing c. Part of fixed manufacturing overhead under variable costing O d. A product cost under absorption costing.
What is the key difference between Absorption Costing and Marginal Costing? A Absorption Costing treats Manufacturing Overhead as a period cost. B Marginal Costing treats Fixed Manufacturing Overhead as a period cost. C Absorption Costing only considers variable costs to calculate net income. D Marginal Costing only considers variable costs to calculate net income.
The primary difference between variable costing and absorption costing is a. in variable costing, fixed manufacturing overhead is a product cost. b. in absorption costing, fixed manufacturing overhead is a product cost. c. in variable costing, variable selling and administrative costs are product costs. d. in absorption costing, fixed selling and administrative costs are 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-allocated manufacturing overhead costs are always the result of which of the following situations? Select one: A. Estimated overhead costs are greater than actual overhead costs. B. Applied overhead costs are less than actual overhead costs. C. Actual overhead costs are greater than estimated overhead costs. D. Actual overhead costs are less than applied overhead 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.