If fixed manufacturing overhead costs are released from inventory under absorption costing, what does this tell you about the level of production in relation to the level of unit sales?

Q: Which of the following is not relevant is not relevant in determining weighted average unit cost in…

A: Equivalent unit of production in beginning inventory is irrelevant because the total beginning…

Q: In a manufacturing company using absorption costing, the fixed costs associated with idle production…

A: The question is related to the Absorption costing.

Q: Which of the following may form the basis for the price a company (working at full capacity) should…

A: Opportunity costs : The benefit foregone by the company by employing the resource in other…

Q: The component of per-unit costs that remains constant as the production level varies is: a. product…

A: The cost of goods can be distinguished as variable or fixed cost.

Q: in intended application between sales life-cycle analysis and life-cycle costing

A: The strategic pricing depends on the product price which it supported the worth it charges to the…

Q: Selling and administrative expenses are considered to be: a. A period cost under variable costing b.…

A: Selling  expenses means the expense incurred while selling the goods like sale men commission , sale…

Q: How can variable costing income statement be used in manufacturing enterprises?

A: In a Variable costing income statement, all variable costs are deducted from the sales, to compute…

Q: Are selling and administrative expenses treated as product costs or as period costs under variable…

A: Selling and administrative expenses:   These expenses incurred by the company does not relate to the…

Q: When units produced exceed units sold, how does operating income differ between variable costing and…

A: Absorption costing:   Absorption costing is compulsory under Generally Accepted Accounting…

Q: Explain how variable costing system costing is used to calculate the cost of goods manufactured.…

A: (1)  Variable costing system The variable costs are included in the product cost in variable…

Q: If fixed manufacturing overhead costs are released from inventory under absorption costing, whatdoes…

A: Absorption Costing: Absorption costing is a method for calculating the full cost or total cost of a…

Q: What are these equations? c.Under absorption costing, what is the cost of goods sold? d.Under…

A: Hey, since there are multiple subparts posted, we will answer the first three subparts. If you want…

Q: Which account is not used in JIT costing? Finished Goods Inventory Raw and In-Process Inventory…

A:

Q: Net income computed using absorption costing can be reconciled to the net income computed using…

A: The difference of income between absorption costing and variable costing only occurs only due to the…

Q: What are the arguments in favor of treating fixed manufacturing overhead costs as product costs?

A: Following are the arguments in treating fixed manufacturing overhead costs as product costs: For…

Q: Net earnings determined using full absorption costing can be reconciled to net earnings determined…

A: In absorption costing, the cost of goods sold is determined after considering all the overheads,…

Q: Explain the variable costing income statement and provide a hypothetical example of a variable…

A: Income statement is prepared to assess the performance of a firm for an accounting period. Income…

Q: Explain how fixed manufacturing overhead costs are shifted from one period to another under…

A: Absorption Costing:   It is a type of costing where all the manufacturing costs are absorbed by the…

Q: Marginal Costing refers to product costing methods that exclude ________ from product costs a)…

A: Using marginal costing, only variable costs are included in product cost.

Q: Explain how the analysis of fixed manufacturing overhead costs differs for (a) planning and control…

A: Fixed Cost:The cost which does not fluctuate on the basis of the output level produced. It remains…

Q: How do you figure out the inventory on the Variable costing income statement?

A: The Income Statement is prepared by various methods one them is Variable Costing.

Q: When production is greater than sales, fixed manufacturing overhead costs are: a. Deferred in…

A: Variable Costing: Variable costing is the method of costing in which only the variable production…

Q: How much fixed overhead cost is included in ending finished goods inventory under absorption…

A: Absorption costing considers the fixed overhead costs for production as per the units sold and not…

Q: Which of the following best defines standard costing?   a. It is the same as actual costing but…

A: The method of calculating the cost of a manufacturing process is known as standard costing. It's a…

Q: What factor, related to manufacturing costs, causes the difference in net earnings computed using…

A: The question is related to Marginal Costing and is multiple choice question.

Q: How would you define fixed and variable product costs? How are these costs used in determining the…

A: Cost of production is the total cost involved in producing a particular volume of products. These…

Q: Explain the difference between variable costing and absorption costing income statements. Provide a…

A: Difference Between Variable Costing and absorption costing income statements. Under Variable…

Q: Net operating income fluctuates directly with changes in sales volume.       Fixed production and…

A: Answer:- correct option is  Unit product costs can change as a result of changes in the number of…

Q: With respect to cost classifications for manufacturers:a. What is the total manufacturing cost?b.…

A: For a manufacturer,  Total manufacturing cost = Direct Material Cost + Direct Labour Cost + Variable…

Q: Describe different types of cost behavior in relation to production and sales volume.

A: Introduction: Cost behavior: Cost behavior refers to the indicator that reflects the information…

Q: When activity-based costing is used, why do manufacturing overhead costs often shift from…

A:

Q: methods. variable costing system, fixed overhead cost is included of the cost of inventory.…

A: Option a, c and d are incorrect The correct statements are a) In variable and absorption costing ,…

Q: Which costing method tends to overstate the cost of high-volume products? a. Traditional…

A: Activity-based costing (ABC) is a costing method that identifies activities in an organization and…

Q: In a cost sheet for a manufactured product the profit perventage is typically added to the figure to…

A: Cost sheet is the sheet which is prepared by the company in order to know and show at each step the…

Q: Which of the following would be included in the cost of a product manufactured according to variable…

A: direct materials: production cost sales commissions: selling cost interest expense: other cost…

Q: Under variable costing, a unit of product includes which costs? A. direct material, direct labor,…

A: Variable costing: In the process of variable costing the fixed manufacturing overhead are not to be…

Q: Please explain the statement below thoroughly with examples. (Ture or False) "In activity-based…

A: As per activity-based costing, each cost activity should be classified into the following four…