Variable selling expenses are a. Product costs under variable costing but period costs under absorptions costing b. Period costs under variable costing but product cost under absorption costing c. Product costs under both costing methods d. period costs under both costing methods

Q: variable

A: Performance evaluation based on income could be best achieved by using variable costing method in…

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: Net profit under absorption costing may differ from net profit determined under d costing. How is…

A: The variable costing includes variable manufacturing costs in its production cost and absorption…

Q: When units sold exceeds, units produced, basis a. net income under absorption costing is higher than…

A: Absorption is an important method of costing in Accounting System. It refers to those costs which…

Q: Questions: a. What is the net income under variable costing method? b. What is the net income…

A: The question is based on the concept of Cost Accounting.

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

A: Variable costing is a method in which only variable cost is considered in product cost. Absorption…

Q: Under variable costing, how is it possible to increase net operating income without increasing sales

A: Introduction:- Under the Variable costing includes only variable manufacturing costs such as  direct…

Q: A) Semi-variable or semi-fixed costs (Mixed costs). These costs include both a direct of indirect…

A: Managerial accounting is the accounting process followed by a business for their better management.…

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: Gross margin is to absorption costing as which of the following is too variable costing?   A.…

A: Variable costing uses Contribution Margin Income Statement by showing Sales – VARIABLE expenses =…

Q: When units produced exceeds units sold, a. net income under absorption costing is higher than net…

A: If units produced > units sold There will be ending inventory. Some part of the fixed factory…

Q: Which statement is TRUE? An absorption costing income statement calculates gross profit; a variable…

A: Absorption costing: Its also called as Full costing. Absorption costing is used for the purpose of…

Q: On the cost- volume -profit graph , the area between the total cost line and the sales line before…

A: Cost-volume-profit graph represents the sales line, total cost line, variable cost, fixed costs and…

Q: Explain why there is a difference in the operating profit and operating income under the two methods…

A: The product cost in an absorption costing method includes all variable and fixed production…

Q: Which of the following cost is not considered as period cost under marginal costing? Variable…

A: Marginal Costing: Marginal Costing is a costing technique whereby variable cost are charged to cost…

Q: Consider the following statements about absorption costing and variable costing: Variable costing…

A: Absorption costing and variable costing are managerial accounting and financial reporting cost…

Q: Which one of the following is not correct about variable costing systems? Select one: O a. Focuses…

A: Variable costing: Under this method refers to the cost technique under which only variable costs are…

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: Under variable costing system only those costs of production that vary (variable) with production…

A: Variable costing is also called marginal costing. Under variable costing all variable cost that is…

Q: Describe how total variable costs and unit variable costs behave with changes in the level of…

A: Since you have asked questions with multiple sub-parts, we shall be answering thefirst 3 for you.…

Q: All these statements are true for Marginal costing except this O Costs are segregated based on…

A: Marginal costing refers to the costing approach in which, variable costs are considered as the…

Q: When production exceeds sales, the net operating income reported under absorption costing generally…

A: The income statement is prepared to estimate the net profit or loss incurred during the period.

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: A changes in direct proportion to changes in the cost-driver level * mixed costs O fixed costs O…

A: If the change in cost and change cost driver level is of direct proportion, it is not fixed cost or…

Q: Marginal Costing refers to product costing methods that exclude ________ from product costs a)…

A: Using marginal costing, only variable costs are included in product cost.

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

A:

Q: TRUE OR FALSE When units sold exceed, units produced, income under absorption costing is higher…

A: Absorption costing is the full costing method under which all the costs related to manufacturing are…

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: 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: Absorption costing is more compatible with cost-volume-profit analysis than is variable costing.…

A: Variable costing simply covers the variable costs actually incurred in production, but not any of…

Q: TRUE OR FALSE The general principle in determining the number of cost pools is that a separate cost…

A: Solution: The general principle in determining the number of cost pools is that a separate cost pool…

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: A mixed cost contains: a variable element and a fixed element. both selling and administrative…

A: Mixed costs are that cost which contain a portion of both fixed and variable costs. Common examples…

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: Required: When compared to variable costing income, Gem's absorption costing income is

A: Solution:- Given, Inventory for Gem's sole product totaled = 6,000 units and 5,200 units…

Q: EOQ focuses on the trade-off between A) carrying costs and delivery costs B) seasonality and steady…

A: EOQ is economic order quantity at which cost is minimum. Total cost consist of cost of order and…

Q: When using a variable costing system, the contribution margin discloses the excess of Revenues over…

A: Contribution  margin = Total revenue - Total variable cost

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: Marginal costing is also known as: O a. Direct costing and Variable costing O b. Direct costing O c.…

A: Variable costs: These costs are incurred in conjunction to the volume of goods produced or sold. It…

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: 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: Under variable costing, all fixed costs (including fixed product costs) are expense in the period…

A: The matching principle is the fundamental concept of accounting. It suggests that the expenses…

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: 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: When production exceeds sales, the net operating income reported under absorption costing generally…

A: The absorption costing includes the per unit cost of fixed overheads as well as variable overheads…

Q: Differences in operating income between variable costing and absorption costing are due solely to…

A: Absorption costing: It refers to the method of product costing in which the price of the product is…

Pricing

Pricing is used as a term in finance and economics, pricing is the process of fixing a value for a product or a service. Pricing establishes a value for a product or service that the customer has to pay. A business can choose from different strategies while deciding to set prices.