The profit value will be greater in absorption costing compared to marginal costing because absorption costing produces: Lower value of closing stock Greater value of closing stock Lower number of units of closing stock Greater number of units in closing stock

Q: The level of output in boxes at which the Premium and Regular would earn the same profit (loss) is

A: Total cost of a product will include both type of costs that are fixed costs and variable costs.…

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: Production exceeds sales. i.e. there is closing stock or closing inventory is increasing Absorption…

A: Since absorption cost accounting includes fastened producing overhead as a product value, all…

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: If the units produced exceed the units sold, which method would you expect to show the higher net…

A: Variable Costing: Variable Costing takes into account only variable manufacturing costs for…

Q: A company that desires to lower its break-even point should strive to: reduce variable costs.…

A: Breakeven point in cost accounting is that point of revenue at which business is only recovering…

Q: Based on variable costing, what would NUBD Corp. show as the value of its ending inventory?

A: Under variable costing fixed cost is not taken into account. The variables cost like direct…

Q: TRUE OR FALSE When absorption costing is used, management may be tempted to overproduce in each…

A: Under the absorption costing method, fixed overhead is considered as a product cost which is…

Q: The objective of management, under absorption costing, is that each product recovers its full cost…

A: Absorption costing is the method used by the managers to determine the cost connected with the…

Q: Does using cost volume profit sensitivity analysis have any drawbacks or possible negative impacts…

A: Cost volume profit analysis is used to control or monitor a sensitive analysis which depicts changes…

Q: When inventories are decreasing, _________ costing will lead to lower profits because…

A: When inventories are decreasing, absorption costing will lead to lower profits because capitalized…

Q: If the units produced exceed unit sales, which method would you expect to show the higher…

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

Q: Which of the following is NOT a problem associated with standard cost accounting? a. Standard…

A:

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: Advocates of variable costing argue that *     a. fixed production costs should be added to…

A: The fixed costs are those costs which are constant on total basis and per unit of cost decreases as…

Q: ?Which of the following statements is false Activity-based costing typically provides less…

A: In order to solve in this question, we need to analyse the given statement one-by-one.

Q: Break-even analysis is concerned with determining a point at which the company can minimize total…

A: Break-even point is the point reached by the company where the revenues and costs of the firm are in…

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: Is there any way to show high net operating income without increasing sales under the absorption…

A: A method of costing that involves consideration of all the manufacturing costs for calculation of…

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: How does Lean Production reduce or eliminate the difference in reported net operating income between…

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

Q: d in the cost of the product b) that it is not really useful for managerial decisions c) that it…

A: A cost accounting system is a system of accounting that is helpful for the internal management to…

Q: variable costing

A: What will be the difference in net earnings computed using variable costing as opposed toabsorption…

Q: in a cost volume profit analysis explain what happen at the break even point and why company do not…

A: Cost volume profit analysis: It is a technique that analyses the effect of cost and volume on…

Q: Do you agree with the following statements? Check only those with which you agree. Check All That…

A: Variable Costing refers to those costs which are directly related to the production and changes with…

Q: Give an example of how, under absorption costing, operating income could fall even though the unit…

A: Definition:   Absorption Costing: The absorption costing is a method used to allocate the fixed…

Q: Product costs under variable costing are typically: Group of answer choices A. higher than under…

A:

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: Relevant of differential cost analysis takes all variable and fixed costs into account to analyze…

A: Differential cost analysis is the difference in cost for every alternative which helps in making the…

Q: What is the basic difference between variable costing and absorption costing? a. Variable costing…

A: Absorption costing: Absorption costing is also called traditional costing. This method of costing…

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: What will be the difference in net earnings computed using variable costing as opposed to absorption…

A: Under variable costing, whole amount of fixed overhead will be charged in the income statement.…

Q: costs assigned to units in inventory are typically lower under absorption costing than under vanable…

A: As per the guidelines, only one question is allowed to be solved so I am answering the first…

Q: Which among the following is not true about traditional costing system? a. This method allocates…

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

Q: When is the stock value high in absorption costing than marginal costing? a. None of the options b.…

A: Actually b and C both options are correct.  Because, stock under absorption costing always higher…

Q: Which of the following is not a potential advantage of variable costing relative absorption costing?…

A: Cost volume profit analysis is calculated by dividing the fixed cost by the unit contribution…

Q: TRUE OR FALSE Net income under variable costing is closely tied to changes in sales levels.

A: Fixed cost remains same under the variable costing. No matter how much units are produced, the total…

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: 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: When units produced are less than units sold, income under absorption costing is higher than income…

A: The income statement can be prepared using various methods as variable costing and absorption…

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: Operating profits move in the same direction as sales when variable costing is used if selling…

A: Introduction:- Variable costing varies in respective of units production Which is used for making…

Q: Production is less than sales. i.e. closing inventory is reducing Absorption costing will produce a…

A: Solution- Under absorption costing, all production costs (direct labor, direct materials, and…

Loanable Funds Theory

The loanable funds theory is a neoclassical theory that determines the interest rate where the demand for loanable investments and supply of loanable funds intersect. To determine the interest rate, this theory employs linear regression and a demand curve. At the equilibrium point, demand for borrowings and demand for the issuance of borrowing funds are inextricably linked. This point of equilibrium should equalize demand and the supply of money available for borrowing.