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ACCT 204

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Terms in this set (80)

Which of the Profit fluctuates with sales.


following statements
is true for a company
that uses variable
costing?
Which of the (B) Depreciation on sales vehicles
following costs at a (C) The salary of a factory manager
sofa manufacturing
company would be
treated as a period
cost under the
variable costing
method?

A cost that would be variable manufacturing costs.


included in product
costs under both
absorption costing
and variable costing
would be

Which of the Fire insurance cost on factory


following costs at a building
manufacturing
company would be
treated as a product
cost under the
absorption costing
method?

Assuming that direct direct materials, direct labor, and


labor is a variable variable manufacturing overhead.
cost, product costs
under variable
costing include only:

What is the cause of Absorption costing allocates fixed


the difference manufacturing costs between cost of
between absorption
between absorption
goods sold and inventories; variable
costing net operating costing considers all fixed
income and variable manufacturing costs to be period
costing net operating costs.
income?

The gross margin for cost of goods sold, including fixed


a manufacturing manufacturing overhead
company is the
excess of sales over

Weber Company more units were produced during the


computes net year than were sold
operating income
under both the
absorption costing
approach and the
variable costing
approach. For a given
year the absorption
costing net operating
income was greater
than the variable
costing net operating
income. This fact
suggests that

Net operating units sold exceed units produced.


income computed
using variable costing
would exceed net
operating income
computed using
absorption costing if:
correct
The costing method variable costing
that can be used
most easily with
break-even analysis
and other cost-
volume-profit
techniques is:

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