Variable Costing Absorption Costing Product Cost Period Cost Product Cost Period Cost a. Direct materials х b. Direct labor c. Variable manufacturing overhead d. Fixed manufacturing overhead e. Variable selling and administrative costs f. Fixed selling and administrative costs

Q: Which of the following is not a product cost? Multiple Cholce O Direct materlals ) Direct labor…

A: Product cost is that which is not included in the direct manufacturing of the goods. Direct…

Q: Activity-based costing is preferable in a system: A. when multiple products have similar product…

A: ABC is an accounting method that is used to trace the total cost of activities necessary to make a…

Q: Identify the following as fixed costs (F), variable costs (V), or mixed costs(M). direct labor…

A: A cost that changes, in total dollar amount, with the change in the level of activity is called…

Q: Conversion costs are a. direct materials plus direct labor. b. direct labor plus manufacturing…

A: Conversion cost:  Cost of changing the materials into a finished product. It includes direct labor…

Q: What system would a manufacturer of unique special orders or batch processes most likely use to…

A: Cost accounting is very important area of accounting, which helps in accounting of various types and…

Q: unit product cost under variable costing

A: Variable costing only takes into account the variable costs to compute the total cost.

Q: Selling and administrative expenses are considered to be: a. A period cost under variable costing b.…

A: Selling  expenses means the expense incurred while selling the goods like sale men commission , sale…

Q: Which of the following must be known about a production process in order to institute a variable…

A: In order to institute a variable costing system, an organisation must aware about the varible and…

Q: If fixed manufacturing overhead costs are released from inventory under absorption costing, what…

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

Q: The ABC system improves the allocation of​ ________.   A. direct materials   B. sales commissions…

A: ABC system: Activity based cost system is widely used in the manufacturing industry. Under this…

Q: Traditional Volume-based costing allocates indirect product costs based on the volume of output,…

A: Note: Hello. Since your question has multiple parts, we will solve the first question for you. If…

Q: Consumption ratios are useful in determining: A. the existence of product-line diversity. B.…

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

Q: Conversion costs consist of: O a direct labor and manufacturing overhead O b. direct and indirect…

A: Prime costs consists of direct material and direct labor, While conversion costs consist of direct…

Q: The marginal cost is: Select one: a. Is the incremental cost of an activity, such as producing a…

A: Marginal cost refers to the additional cost.

Q: Conversion costs are A. direct materials plus manufacturing overhead. B. direct labor plus…

A: Conversion cost are those cost which are incurred to convert raw material into finished goods.

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: Which one of the following activity shows semi-variable cost behaviour A. Unit level activity B.…

A: A semi-variable cost, also known as a semi-fixed cost or a mixed cost, is a cost composed of a…

Q: Under full absorption costing, which of the following are included in product costs? Only variable…

A: The absorption costing system is also known as the full costing system. It is allowed to be used by…

Q: In your own words, explain the difference between absorption costing and variable costing methods.…

A: Absorption costing: Its also called as Full costing.

Q: Variable manufacturing overhead costs are treated as period costs under both absorption and variable…

A: Variable manufacturing overhead cost is treated as product cost under both absorption and variable…

Q: Direct material used Direct labor Variable manufacturing overhead Fixed manufacturing overhead…

A: Formula: Per Unit cost = Direct materials + Direct labor + Variable manufacturing overhead + Fixed…

Q: Explain how fixed manufacturing overhead costs are shifted from one period to another under…

A: Absorption Costing:   It is a type of costing where all the manufacturing costs are absorbed by the…

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: "Under variable costing system, the unit product cost includes:"     "Direct materials, direct…

A: Variable costs are those costs which changes directly with change in level of activity. If level of…

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: Production cost under marginal costing includes [A] prime cost only [B] prime cost and fixed…

A: Under marginal costing, Fixed costs are not considered while calculating production cost. Marginal…

Q: Please indicate which are product costs and which are period costs.   Under Absorption Costing:…

A: Solution:- Under Absorption Costing:- Absorption costing consists direct materials, direct labor,…

Q: The difference between marginal costing and absorption costing net income centres on how to account…

A: Absorption costing means that inventory is valued at total manufacturing cost including fixed…

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

A:

Q: A mixed cost contains a. a variable element and a fixed element. b. 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 is concerned with the variable costs and includes direct material, direct labor,…

A: There are different approaches to find net income such as variable costing, absorption costing and…

Q: fit - Expenses = aterials Direct Labor = Manufacturing Costs = Cost of Goods Manufactured : WTD

A: As per rule, allowed to answer one question at a time and post the remaining in the next submission.

Q: When materials costs differ significantly among products in a value stream, the valuestream product…

A: In contrast to traditional costing, value stream costing is an accounting technique for tracking…

Q: Support department costs are applied to products as a part of a.fixed manufacturing costs b.fixed…

A: Support department costs are the costs incurred in the support department which are allocated to the…

Q: Under which costing system non-manufacturing costs may be included in calculating product ?costs…

A: Product cost can be defined as the cost that is involved in manufacturing a product. It includes the…

Q: If fixed manufacturing overhead costs are released from inventory under absorption costing, what…

A: Overhead Costs: Overhead costs are business expenses that cannot be associated or traced directly…

Q: COMPUTE THE UNIT PRODUCT COST UNDER ABSORPTION COSTING 2. COMPUTE THE UNIT PRODUCT COST UNDER…

A:

Q: Using the above information derive a cost function that can be used to predict the total production…

A: High-low cost estimation method is used to segregate the fixed cost and variable cost element in…

Q: Which one of the following is correct about variable costing systems? Select one: a. Normally result…

A: Under the variable costing system, the product cost includes direct material, direct labor, direct…

Q: The direct costs of materials that change with the number of units produced is an example of a fixed…

A: False, the direct cost of materials is not an example of fixed production cost because it is a…

Q: The product costing method that includes fixed manufacturing cost in inventories costs is called…

A: Variable cost is the cost which vary with the level of output where as fixed cost remain fixed what…

Q: Required: Compute the unit product cost under absorption costing. Compute the unit product cost…

A: Variable costing means that inventory is valued at variable manufacturing cost and fixed cost is…

Q: Which costing method tends to overstate the cost of high-volume products? a. Traditional…

A: Activity-based costing (ABC) is a costing method that identifies activities in an organization and…

Q: Classify each cost element as either fixed, variable or mixed Calculate: the variable production…

A: Using high low method, variable cost per unit is calculated as follows: Variable cost per unit=…

Q: Conversion costs include direct labor and manufacturing overhead. Select one: O a. FALSE O b. TRUE

A: Conversion costs: It is sum total of direct manufacturing labor costs and manufacturing overhead…

Q: Product and period cost according to absorption costing and Variable costing with examples ?

A: Absorption costing is a method where all the cost related to the manufacturing process is considered…

Management by Exception

A manager’s job is a very tough one. A manager needs to look at the various areas of work and as a manager he has to look after two or more important jobs or activities at the same time for the growth of the business. In order to do all these things in an effective manner, a manager must adopt or practice different management styles and tactics.