Answered: The gross-margin format is used for A.…

The gross-margin format is used for A. mixed costing income statement B. absorption costing income statement C. variable costing income statement D. standard costing income statement

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 15PA: Happy Trails has this information for its manufacturing: Â Its income statement under absorption...

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Question

The gross-margin format is used for
A. mixed costing income statement
B. absorption costing income statement
C. variable costing income statement
D. standard costing income statement

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Absorption costing is also referred to as: A. direct costing B. marginal costing C. full costing D. variable costing
Happy Trails has this information for its manufacturing: Â Its income statement under absorption costing is: Prepare an income statement with variable costing and a reconciliation statement between both methods.
In the variable costing income statement, how are the fixed manufacturing costs reported, and how are the fixed selling and administrative expenses reported?
Using the costs listed in the previous problem, classify the costs as either product costs or period costs.
In the cost equation Y=a+bx, Y represents which of the following? A. fixed costs B. variable costs C. total costs D. units of production
Accumulating costs means that a. costs must be summed and entered on the income statement. b. each cost must be linked to some cost object. c. costs must be measured and tracked. d. costs must be allocated to units of production. e. costs have expired and must be transferred from the balance sheet to the income statement.
In assigning costs to goods transferred out, how do the weighted average and FIFO methods differ?
Under absorption costing, a unit of product includes which costs? A. direct material, direct labor, and manufacturing overhead B. direct material, direct labor, and variable manufacturing overhead C. direct material, direct labor, and fixed manufacturing overhead D. direct material, direct labor, and all variable manufacturing overhead
Trail Outfitters has this information for its manufacturing: Its income statement under absorption costing is as follows: Prepare an income statement with variable costing and a reconciliation statement between both methods.
Which is not a step In activity-based costing? A. identify the activities performed by the organization B. identify the cost driver(s) associated with each activity C. compute a cost rate per production D. assign costs to products by multiplying the cost driver rate by the volume of the cost driver units consumed by the product
Which costs are assigned using the weighted-average method?
How does absorption costing differ from variable costing? When will absorption-costing operating income exceed variable-costing operating income?