Product costs under variable costing are typically: Group of answer choices A. higher than under absorption costing B. lower than under absorption costing C. the same as with absorption costing D. higher than absorption costing when inventory increases

Q: Choose the letter of the correct answer 1. Statement 1: Product cost under Variable costing are…

A: Hi student Since there are multiple questions, we will answer only first question.

Q: Considering the data given above, under variable costing and absorption costing, ending inventory…

A: Income statement: The income statement determines the net income of the business by subtracting the…

Q: Variable selling expenses are a. Product costs under variable costing but period costs under…

A: The correct answer is Option (a).

Q: Operating profit is affected by changes in production under both the variable costing and absorption…

A: Operating profit is profit earned by the company from its primary or core purpose of the business.…

Q: Net profit under absorption costing may differ from net profit determined under d costing. How is…

A: The variable costing includes variable manufacturing costs in its production cost and absorption…

Q: Under variable costing, how is it possible to increase net operating income without increasing sales

A: Introduction:- Under the Variable costing includes only variable manufacturing costs such as  direct…

Q: Gross margin is to absorption costing as which of the following is too variable costing?   A.…

A: Variable costing uses Contribution Margin Income Statement by showing Sales – VARIABLE expenses =…

Q: The traditional (Volume -based cost systems ) tend to : a. under -cost low -volume products and…

A: Explanation: In traditional volume-based cost system, direct material and direct labour cost are…

Q: Which statement is TRUE? An absorption costing income statement calculates gross profit; a variable…

A: Absorption costing: Its also called as Full costing. Absorption costing is used for the purpose of…

Q: On the cost- volume -profit graph , the area between the total cost line and the sales line before…

A: Cost-volume-profit graph represents the sales line, total cost line, variable cost, fixed costs and…

Q: Consider the following statements about absorption costing and variable costing: Variable costing…

A: Absorption costing and variable costing are managerial accounting and financial reporting cost…

Q: First: The inventory value shown on the balance sheet is generally higher under absorption costing…

A: Under variable costing, product cost consists of only variable manufacturing costs.  Under…

Q: nder variable costing, which of the following costs are treated as period costs?

A: Variable costing:- It is a concept used in cost and managerial  accounting. In which the fixed…

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

A: Answer: Correct answer is option ( d) d. Absorption costing "inventories" all direct costs, but…

Q: What could be the reason for which you can have different income figures in absorption costing and…

A: Cost accounting is the branch of accounting that inspects the cost structure of a business. This…

Q: Volume-based cost systems tend to: Select one: O a. over-cost low-volume products and under-cost…

A: Volume-based costing. (is also called customary costing) is an item costing framework when an…

Q: When production exceeds sales, the net operating income reported under absorption costing generally…

A: The income statement is prepared to estimate the net profit or loss incurred during the period.

Q: When units sold exceeds units produced the relationship between net income under absorption costing…

A: THE VARIABLE COSTING METHOD TREATS FIXED MANUFACTURING OVERHEAD COSTS AS PERIOD COSTS , ALL FIXED…

Q: When comparing absorption costing with variable costing, which of the following statements is not…

A: Absorption costing is that method of costing, in which all total costs (fixed and variable) are…

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: Under variable costing a. Net income will tend to vary inversely with production changes b. Net…

A: DM=Direct materials OHD=Overhead   Step 1   Variable costing is a method that only allocates…

Q: First: When reconciling variable costing and absorption costing net operating income, fixed…

A: Answer: option c. Only the second statement is true Explanation: Under absorption costing, a portion…

Q: When a traditional, volume-based costing system is used, which of the following products is most…

A: Traditional costing is the allocation of factory overhead to products based on the volume of…

Q: The primary difference between variable costing and absorption costing is in variable costing,…

A: Absorption Costing: “Absorption costing is a method that allocates “direct labor, direct materials,…

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: TRUE OR FALSE When units sold exceed, units produced, income under absorption costing is higher…

A: Absorption costing is the full costing method under which all the costs related to manufacturing are…

Q: Variable selling expenses are a. Product costs under variable costing but period costs under…

A: Hi student Since there are multiple questions, we will answer only first question.

Q: Product costs under variable costing are typically:   Question 1 options:   lower than under…

A: As per the variable costing method, only variable cost is considered as the product cost while in…

Q: Marginal costing is usually deployed when decisions about volume are being made. Discuss the…

A: Monetary Accounting has appeared with the advancement of huge scope business   as business entities.…

Q: Inventory values calculated using variable costing as opposed to absorption costing will generally…

A: Inventory is referred to as current asset which includes raw materials, work in process inventory…

Q: A mixed cost contains: a variable element and a fixed element. both selling and administrative…

A: Mixed costs are that cost which contain a portion of both fixed and variable costs. Common examples…

Q: variable costing

A: Option a is wrong because even if there is no change in the fixed costs in the beginning and ending…

Q: ) What is the ending inventory (February) under variable costing? 2) What is the ending inventory…

A: The entity uses two types of costing systems, which are as follows: (1) Variable costing…

Q: Required: When compared to variable costing income, Gem's absorption costing income is

A: Solution:- Given, Inventory for Gem's sole product totaled = 6,000 units and 5,200 units…

Q: On the variable costing income statement, the figure representing the difference between…

A: Variable costing income statement: Particulars Amount Sales  xx Less: Cost of goods sold…

Q: This best accounts for the difference in profit between the absorption and variable costing *…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: Under variable costing, all fixed costs (including fixed product costs) are expense in the period…

A: The matching principle is the fundamental concept of accounting. It suggests that the expenses…

Q: If a company chooses a price to charge for its product by adding up all the expenses necessary to…

A: Solution: There are various method of pricing the product such as: 1. Target costing 2. Skimming…

Q: Under variable costing: a. Net operating income will always be higher than under absorption costing.…

A: Under variable costing, the inventory cost is valuate on the basis of variable manufacturing cost…

Q: When production exceeds sales, a. Ending inventory under variable costing will exceed ending…

A: Option no. (b) is correct.

Q: When reconciling variable costing and absorption costing net operating income, fixed overhead costs…

A: Solution: S1. When reconciling variable costing and absorption costing net operating income, fixed…

Q: When production exceeds sales, the net operating income reported under absorption costing generally…

A: The absorption costing includes the per unit cost of fixed overheads as well as variable overheads…

Q: 2. Explain the arguments for the use of traditional absorption costing rather   than marginal…

A: 1.  Variance analysis can be summarized as an analysis of the difference between planned and actual…

Q: T, F. In a make or buy short-run decision situation, the critical element to consider is whether the…

A: Variable cost is that cost that varies with the number of units produced. It means that increase in…

Q: A cost that would be included in product costs under both absorption costing and variable costing…

A: The key difference between variable and absorption costing approaches is that while absorption…

Q: Over extended periods of time, the net income figures reported under absorption costing will be: a.…

A: Under absorption costing, unit cost is calculated on the basis of total cost including fixed and…

Q: How is operating income affected if the number of units sold exceeds the number of units produced?…

A: Under variable costing, fixed manufacturing overhead is considered as a period cost and deducted a…