Absorption Costing: In absorption costing all the costs of production are absorbed by or assigned to all the units of production. In simple words, all the direct costs or overheads costs incurred while manufacturing the products whether variable or fixed will be included in the final product cost. Variable Costing: Variable costing is also known as marginal costing as it is dynamic in nature, i.e., cost of manufacturing changes proportionally with the change in the units of production. Variable costing does not consider fixed costs; it only acknowledges variable costs which have a direct association with production. To identify: The correct option.

Question

Want to see the full answer?

Answer 1

Question

Chapter 19, Problem 5MCQ

To determine

Absorption Costing:

In absorption costing all the costs of production are absorbed by or assigned to all the units of production. In simple words, all the direct costs or overheads costs incurred while manufacturing the products whether variable or fixed will be included in the final product cost.

Variable Costing:

Variable costing is also known as marginal costing as it is dynamic in nature, i.e., cost of manufacturing changes proportionally with the change in the units of production. Variable costing does not consider fixed costs; it only acknowledges variable costs which have a direct association with production.

To identify: The correct option.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Please provide the solution to this general accounting question with accurate Accounting calculations.

I need the correct answer to this general accounting problem using the standard accounting approach.

Need Answer please About this Financial Accounting Question

Answer 2

Question

Chapter 19, Problem 5MCQ

To determine

Absorption Costing:

In absorption costing all the costs of production are absorbed by or assigned to all the units of production. In simple words, all the direct costs or overheads costs incurred while manufacturing the products whether variable or fixed will be included in the final product cost.

Variable Costing:

Variable costing is also known as marginal costing as it is dynamic in nature, i.e., cost of manufacturing changes proportionally with the change in the units of production. Variable costing does not consider fixed costs; it only acknowledges variable costs which have a direct association with production.

To identify: The correct option.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 19, Problem 5MCQ

To determine

Absorption Costing:

In absorption costing all the costs of production are absorbed by or assigned to all the units of production. In simple words, all the direct costs or overheads costs incurred while manufacturing the products whether variable or fixed will be included in the final product cost.

Variable Costing:

Variable costing is also known as marginal costing as it is dynamic in nature, i.e., cost of manufacturing changes proportionally with the change in the units of production. Variable costing does not consider fixed costs; it only acknowledges variable costs which have a direct association with production.

To identify: The correct option.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 19, Problem 5MCQ

To determine

Absorption Costing:

In absorption costing all the costs of production are absorbed by or assigned to all the units of production. In simple words, all the direct costs or overheads costs incurred while manufacturing the products whether variable or fixed will be included in the final product cost.

Variable Costing:

Variable costing is also known as marginal costing as it is dynamic in nature, i.e., cost of manufacturing changes proportionally with the change in the units of production. Variable costing does not consider fixed costs; it only acknowledges variable costs which have a direct association with production.

To identify: The correct option.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 19, Problem 5MCQ

To determine

Absorption Costing:

In absorption costing all the costs of production are absorbed by or assigned to all the units of production. In simple words, all the direct costs or overheads costs incurred while manufacturing the products whether variable or fixed will be included in the final product cost.

Variable Costing:

Variable costing is also known as marginal costing as it is dynamic in nature, i.e., cost of manufacturing changes proportionally with the change in the units of production. Variable costing does not consider fixed costs; it only acknowledges variable costs which have a direct association with production.

To identify: The correct option.

Answer 6

Chapter 19, Problem 5MCQ

To determine

Absorption Costing:

In absorption costing all the costs of production are absorbed by or assigned to all the units of production. In simple words, all the direct costs or overheads costs incurred while manufacturing the products whether variable or fixed will be included in the final product cost.

Variable Costing:

Variable costing is also known as marginal costing as it is dynamic in nature, i.e., cost of manufacturing changes proportionally with the change in the units of production. Variable costing does not consider fixed costs; it only acknowledges variable costs which have a direct association with production.

To identify: The correct option.

Answer 7

Chapter 19, Problem 5MCQ

To determine

Absorption Costing:

In absorption costing all the costs of production are absorbed by or assigned to all the units of production. In simple words, all the direct costs or overheads costs incurred while manufacturing the products whether variable or fixed will be included in the final product cost.

Variable Costing:

Variable costing is also known as marginal costing as it is dynamic in nature, i.e., cost of manufacturing changes proportionally with the change in the units of production. Variable costing does not consider fixed costs; it only acknowledges variable costs which have a direct association with production.

To identify: The correct option.

Answer 8

Expert Solution & Answer

Answer 9

Expert Solution & Answer

Answer 10

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 11

Ch. 19 - Prob. 1MCQ Ch. 19 - Prob. 2MCQ Ch. 19 - Prob. 3MCQ Ch. 19 - Prob. 4MCQ Ch. 19 - Prob. 5MCQ Ch. 19 - Prob. 1DQ Ch. 19 - Prob. 2DQ Ch. 19 - Prob. 3DQ Ch. 19 - Prob. 4DQ Ch. 19 - Prob. 5DQ

Want to see the full answer?

Chapter 19 Solutions