Answered: exceeded the units produced, then…

exceeded the units produced, then income under direct costing will be higher than absorption costing income. A• True False B• True True

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 1MC: Why does a company use a standard costing system? A. to identify variances from actual cost that...

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Question

I. In throughput costing, using SD cost, all variances including direct labor variances must be closed to Cost of sales if the said variances are immaterial.

II. When units sold exceeded the units produced, then income under direct costing will be higher than absorption costing income.

A• True False

B• True True

C• False True

D• False False

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