### Multiple Choice Question for Cost Accounting:**Question:** Which of the following statements is true?**Options:**1. Variable costing treats direct materials as a period cost.2. Variable costing treats direct labor as a period cost.3. Variable costing treats variable manufacturing overhead as a period cost.4. Variable costing treats fixed manufacturing overhead as a period cost.**Explanation:**In accounting, period costs are expenses that are not tied directly to production, while product costs are incurred directly in the production of goods. Variable costing only treats fixed manufacturing overhead as a period cost, recognizing variable production costs as product costs that are inventoried until the goods are sold.

The period costs are the costs which are expensed in the period they are incurred. Example selling…

Which of the following statements is true? Multiple Cholce Varlable costing treats direct materials as a perlod cost. Varlable costing treats direct labor as a perlod cost. O varlable costing treats varlable manufacturing overhead as a perlod cost. Varlable costing treats fixed manufacturing overhead as a period cost.

Which of the following statements is true? Multiple Cholce Varlable costing treats direct materials as a perlod cost. Varlable costing treats direct labor as a perlod cost. O varlable costing treats varlable manufacturing overhead as a perlod cost. Varlable costing treats fixed manufacturing overhead as a period cost.

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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Similar questions

Which of the following is considered part of the product costs under absorption costing but not under variable costing? Group of answer choices Direct materials Selling expenses Variable overhead Fixed manufacturing overhead
Prime costs are: A) Direct Materials only B) Direct Labor and Overhead C) Direct Materials and Overhead D) Direct Materials and Direct Labor
The following statements have been made in relation to activity-based costing: 1. A cost driver is a factor which causes a change in the cost of an activity. 2. Traditional absorption costing tends to underestimate overhead costs for high-volume products. Which of the above statements is/are true? O A. 1 only O B. 2 only OC. Neither 1 nor 2 O D. Both 1 and 2
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 explain the statement below thoroughly with examples. (Ture or False) "In activity-based costing, the manufacturing overhead cost per unit will depend partially on the number of units in a batch."