Test II. MATCHING Match the type of income statement to the costs it includes. a. Variable costing income statement b. Absorption costing income statement c. Both types of income statements 1. Direct materials for units sold 2. Direct labor for units sold 3. Variable overhead for units sold 4. Fixed factory overhead for the period 5. Only fixed factory overhead for units sold 6. Variable selling expense 7. Fixed selling expense 8. Administrative expense
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Test II. MATCHING
Match the type of income statement to the costs it includes.
a. Variable costing income statement
b. Absorption costing income statement
c. Both types of income statements
1. Direct materials for units sold
2. Direct labor for units sold
3. Variable overhead for units sold
4. Fixed factory overhead for the period
5. Only fixed factory overhead for units sold
6. Variable selling expense
7. Fixed selling expense
8. Administrative expense
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