Variable Costing differs from Full Absorption Costing in that it applies:all fixed and variable cost to a product.A.B.all variable cost a product.C.Dit applies only manufacturing cost to a product.it applies only manufacturing variable and fixed cost to a product.

Variable costing is a cost accounting method where only variable manufacturing costs, such as direct…

Answered: Variable Costing differs from Full…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Which of the following statements is true? O a. Activity-based costs per unit are always greater than volume-based costs per unit. O b. All the statements are false. O c. Different cost allocation methods are constructed so that they typically result in the same or similar estimates of how much it costs to make a product. O d. Activity-based costing typically provides less information about product costs while requiring more recordkeeping. O e. Volume-based costing has typically resulted in overcost for high-volume products and undercost for low-volume products. 11:40 ere to search A D a dx ENG 22-05-2021 hp delete home end an Ed 96 & 7\ 6. + backspace mum lock RO 7 V home g up K enter 50 pause B t shift 2Y end alt ctrl ins
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.
Which of the following line items will not be found in the absorption costing income statement? Group of answer choices Variable manufacturing and non-manufacturing costs Contribution margin Gross profit Fixed manufacturing costs
'Direct costs are treated differently under the ABC method than under the traditional full costing method.' Is the above statement true or false? A. True B. False
In activity-based costing, some manufacturing costs may be excluded from product costsTRUEFALSE
Variable costing income will be greater than absorption costing income when: a. Sales is greater than production. b. contribution pricing is applied c. Production is less than or equal to sales. d. Production is greater than sales
Give the general formula for a mixed cost. What does each term represent? Provide an example of a product or service with a mixed cost.
3.Activity based costing (ABC) is a method of allocating the indirect costs of sales commissions to products. A. true b. false
What is the difference between variable costing and absorption costing income statements? a. Provide a hypothetical income statement in both formats in which the number of units sold is different from the number of units manufactured. b. Explain the contrast between the two formats.
A cost that would be included in product costs under both absorption costing and variable costing is: supervisory salaries. variable selling expenses. factory rent. variable manufacturing costs.
ABC generally causes the least amount of cost distortion among products because indirect costs are allocated to the products based on
The three major cost components of manufacturing a product are,

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Variable Costing differs from Full Absorption Costing in that it applies: A. all fixed and variable cost to a product. B. all variable cost a product. C it applies only manufacturing cost to a product. D it applies only manufacturing variable and fixed cost to a product.