Choose the letter of the correct answer 1. Statement 1: Product cost under Variable costing are Direct Material, Direct Material and Variable Overhead only. Statement 2: Under absorption costing, Factory Overhead is considered as indirect product cost. A. Both statements are True B. Both statements are False C. Statement 1 is true. Statement 2 is false D. Statement 1 is false. Statement 2 is true
Choose the letter of the correct answer
1.
Statement 1: Product cost under Variable costing are Direct Material, Direct Material and Variable Overhead only.
Statement 2: Under absorption costing, Factory Overhead is considered as indirect product cost.
A. Both statements are True
B. Both statements are False
C. Statement 1 is true. Statement 2 is false
D. Statement 1 is false. Statement 2 is true
2.
Statement 1. Selling cost is treated as expenses under variable costing.
Statement 2. If sales for a period exceed production, then variable costing income will be higher than absorption costing income.
A. Both statements are True
B. Both statements are False
C. Statement 1 is true. Statement 2 is false
D. Statement 1 is false. Statement 2 is true
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