When reconciling variable costing and absorption costing net operating income, fixed overhead costs deferred in inventory under absorption costing should be deducted from variable costing net operating income to arrive at the absorption costing net operating income. S2: When the number of units in inventories decrease between the beginning and end of the period, net operating income under absorption costing will typically be greater than under variable costing.     a. both are true b. both are false c. S1 is true d. S2 is true

Q: Which of the following is NOT true of variable costing?     a. Profits may increase though sales…

A: Variable costing is a concept used in managerial and cost accounting in which the fixed…

Q: Absorption costing is: A. a good way to value inventories for the balance sheet. B. used for…

A: Absorption costing is an accounting method used to calculate the manufacturing cost of a product. In…

Q: TRUE OR FALSE The use of absorption costing facilitates contribution margin approach in preparing…

A: Performa of income statement under absorption costing Particulars  Amount Sales  - Less :…

Q: When Total Contribution magrin equals total fixed costs, this indicates operating income True…

A: If the contribution margin is equal to the total fixed cost that means it a situation of the…

Q: The following data were provided by Rider, Inc, which produces a single product that it sells for…

A: Absorption costing is that costing system under which product costs includes all manufacturing costs…

Q: A) Semi-variable or semi-fixed costs (Mixed costs). These costs include both a direct of indirect…

A: Managerial accounting is the accounting process followed by a business for their better management.…

Q: Gross profit is disclosed on an income statement prepared using O a) Variable costing. O b)…

A: Gross profit is disclosed on an income statement prepared using Direct Costing method.... Option C…

Q: If an income statement is prepared as an internal report, under which of the following methods would…

A: The income statement is the financial statement of the business. It tells about the profitability of…

Q: when total contribution margin equals total fixed cost this indicates operating income true false

A: First we understand contribution margin Contribution margin means Variable cost   deduct from Sales…

Q: Gross margin is to absorption costing as which of the following is too variable costing?   A.…

A: Variable costing uses Contribution Margin Income Statement by showing Sales – VARIABLE expenses =…

Q: In a CVP income statement, cost of goods sold is generally O completely a variable cost. O…

A: A CVP (Cost-Volume-Profit) income statement is a financial statement that classifies costs as…

Q: Calculation of profit change from changes in sales price, sales volume, variable costs, or fixed…

A: This question deals with profit change from changes in sales price, sales volume, variable costs, or…

Q: Within the relevant range, A B D variable cost per unit increases as production decreases variable…

A: VARIABLE COST Variable cost are costs that changes as the Volume Changes.  Variable Cost is…

Q: When inventories are decreasing, _________ costing will lead to lower profits because…

A: When inventories are decreasing, absorption costing will lead to lower profits because capitalized…

Q: Comparison between incremental revenues and incremental costs is the decision base for: a.…

A: Incremental revenue and incremental cost concept means where while taking any decision , we wants to…

Q: 1. Distinguish between variable and fixed costs both on a per unit and total basis (graphs may be…

A: Distinguish between variable and fixed costs both on a per unit and total basis Variable costs are…

Q: TRUE OR FALSE Net income under variable costing is unaffected by changes in production levels.

A: in variable costing fixed manufacturing overhead are exclude from the cost of production

Q: Variable costs per unit are affected by an increase or decrease in activity. True or False True…

A: Variable Cost is that type of cost which is associated with the number of units produced or volume…

Q: 3. What are differential Revenues? A B C Any Revenue that increases when costs go down. D.…

A: Revenues and Expenses are important part of income statement. Under this, net income is calculated…

Q: S1: Abnormal spoilage is considered a period cost. S2: Backflush costing requires fewer allocations…

A: Product costs are direct costs incurred in producing the product and can be directly allocated to…

Q: (c) Describe a situation where net profit under variable costing is higher than absorption JIT…

A: Variable costing is a costing method in which overhead is incurred in the period of production of…

Q: a) Why are neutral expenes eliminated and imputed cost added to derivee cost from expenses

A: Deriving the cost from expenses is necessary to ascertain the exact cost incurred and to…

Q: hich of the following statements related to CVP chart is not true? To determine the variable cost…

A: This option is not true :- E. The intercept between the total cost line on a graph and the y axis…

Q: Product costs under variable costing are typically: Group of answer choices A. higher than under…

A:

Q: Under variable costing, all fixed manufacturing costs are treated as a a. product cost included in…

A: Product costs are costs incurred in the manufacturing of products during the period. Example:-…

Q: 'Direct costs are treated differently under the ABC method than under the traditional full costing…

A: Costs consists of two main types – direct costs and indirect costs.   Direct costs include costs…

Q: On a cost-volume-profit graph, the revenue line will be shown below the total expense line for any…

A: A cost-volume-profit graph illustrates how changes in sales volume affect a company's profit by…

Q: Variable Costs are costs that change in direct proportion to changes in activity level. (b) Unit…

A: Variable costs: These are the costs that vary depending on the volume of the activity. Fixed costs:…

Q: For each of the following statements, indicate whether it is true, false, or uncertain. a. A cost is…

A: Total cost is the summation of fixed costs and variable costs incurred in the process of production.…

Q: TRUE OR FALSE Net income under variable costing is closely tied to changes in sales levels.

A: Fixed cost remains same under the variable costing. No matter how much units are produced, the total…

Q: Based on the above information: i. Calculate (CLO 3, C3) the cost per unit (RM) for each cost…

A: Mixed cost are the cost during the production process that has the element of both the fixed and…

Q: 1. The amount of increase or decrease in revenue that is expected from a particular course of action…

A: Differential costing is a technique where differential costs are considered relevant. Differential…

Q: Which of the following is true? • Depreciation cost is always product cost • Depreciation cost is…

A: An entity may either calculate its net profit through marginal costing or absorption costing…

Q: Under variable costing: a. Net operating income will always be higher than under absorption costing.…

A: Under variable costing, the inventory cost is valuate on the basis of variable manufacturing cost…

Q: In describing the cost formula equation Y = a + bX, which of the following statements is NOT…

A: Cost formula equation shows the combination or mixture of fixed costs and variable costs for…

Q: 2. Explain the arguments for the use of traditional absorption costing rather   than marginal…

A: 1.  Variance analysis can be summarized as an analysis of the difference between planned and actual…