TEST II. Write FC if the following is a Fixed Cost or VC if it is Variable cost. 6. costs of goods sold = 7. raw materials= 8. inputs to production= 9. packaging = 10. property taxes=

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: The major categories or captions that would appear on an income statement prepared in the variable…

A: Variable costing: Under this method, all cost is divided into two parts. The first part is a…

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: a) Complete the following table: [Calculate Marginal Physical Product, Average Fixed Costs, Average…

A: A cost is an expense incurred in the production or sale of a product or the preparation of an asset…

Q: Which of the following is NOT true of variable costing?     a. Profits may increase though sales…

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

Q: Which of the following is true of a company that uses absorption costing? Multiple Choice   Net…

A: Absorption costing: Under the absorption costing method, manufacturing costs such as direct material…

Q: The variable cost ratio is calculated as: а. The selling price per unit ratio / variable cost per…

A: Variable cost = Variable manufacturing cost + Variable selling and administrative cost

Q: Which of the following describes the behavior of the fixed cost per unit?

A: Fixed cost is the cost which is doesnt change gets effects with the change in production which means…

Q: The production manager wants to achieve real and permanently decrease in the unit cost of the…

A: A planned constructive solution to reducing spending is cost reduction. Cost reduction is described…

Q: Throughput margin is equal to revenues minus direct materials and direct labor of the cost of goods…

A: Throughput margin = sales revenue - material cost .

Q: The variable cost ratio is calculated as? .a the selling price per unit/the selling price per)…

A: Variable cost ratio = Variable cost per unit / Selling price per unit

Q: 1: When using absorption costing, a company may be able to show a profit even if it is operating…

A: Solution: True, When using absorption costing, a company may be able to show a profit even if it is…

Q: A favorable cost variance occurs when a. actual costs are the same as standard costs b. actual costs…

A: solution note Dear student as per the Q&A guideline we are required to answer the first question…

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: Which of the following statements is true for a firm that uses variable costing? A. The cost of a…

A: Variable costing may be a strategy that as it were allocates variable costs to stock. This approach…

Q: Under variable costing, which of the following costs are assigned to inventory?  Variable Selling &…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Which of the following would most likely decrease the product cost per unit under variable costing?…

A: Under variable costing, product cost per unit will comprise of direct material cost , direct labour…

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: 2)The contribution-margin ratio is: A) fixed cost per unit divided by variable cost per unit. B)…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: Suppose that the cost of producing X units of a product in a manufacturing company is F + VX where F…

A: Under the high low method, it separates the fixed as well as variable costs which is given for the…

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: East Coast West Coast Sales V Variable cost of goods sold v Manufacturing margin v Variable selling…

A: Contribution means sales minus varibale cost and when we divide contribution with sale , we get…

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: Contribution margin is it Sales less cost of goods sold or Sales less all variable and fixed…

A: First of all: Sales less Cost of goods sold will give us the gross profit earned from sales. Sales…

Q: Contribution margin is sales less Star

A: Variable cost can be defined as the cost which is incurred on the production of goods. The value of…

Q: True or False Product cost under Variable costing are DM, DL and VOH only.     Under absorption…

A: Solution:- Discussions of above statements as follows under:-

Q: Costs treated as product costs under direct costing are:   A. Variable production cost only B. All…

A: Direct Costing: Costs related to  production of the product only  are assigned to the product and…

Q: a. Complete the following table at the given levels of output and the relationships between quantity…

A: Given, Selling Price of the new product = $7 Fixed Costs = $4000 Variable Cost = $3.8

Q: Given the mixed cost function y = $6.50x + $3,000. What does the $6.50 represent? a.Total cost per…

A: Intercept is the total fixed cost and slope of cost function is the variable cost per unit. And the…

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: 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: For questions 5-6, please classify the costs of each of the following as variable, fixed, mixed, or…

A: The question is related to the classification of costs on the basis of behavior. There are three…

Q: The variable cost ratio is calculated as: a. None of the given answers O b. The selling price per…

A: Variable cost means the cost which vary with the level of output and fixed cost means the cost which…

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: Which of the following is a correct statement? OA the fixed manufacturing cost is based on a per…

A: Fixed manufacturing cost is a fixed overhead cost. Under Variable Costing, fixed overhead cost is…

Q: 1. What would the manufacturing cost per unit be under absorption costing? 2. What would the…

A: C Division of White Company 1 Calculation of manufacturing cost per unit using Absorption Costing:…

Q: The contribution margin ratio can be calculated in all of the following ways except: a.1 − Variable…

A: Contribution margin ratio is the difference total sales and total variable cost which is calculated…

Q: What is happening to average costs when marginal cost is greater than average cost at a specific…

A: When marginal cost is greater than average cost (including average variable cost or average total…

Q: Given the mixed cost function y = $6.50x + $3,000. What does the $6.50 represent? O a. The fixed…

A: The $6.50 represent variable expense, x represent no. of units and $3,000 represent fixed costs. The…

Q: Total variable costs? Variable cost per unit produced  Variable cost per unit produced? If 75% of…

A: Answer:   Particulars Amount Materials 85000 Direct Labour cost 70000 Indirect…

Q: Briefly explain the impact of each of the following scenarios on the contribution margin per unit…

A: Contribution Margin per unit refers to the excess value over the variable expenses per unit when…

Q: Which one of the following is not considered an assumption of cost-volume-profit analysis? a. Costs…

A: Option b is correct.

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.