What factor, related to manufacturing costs, causes the difference in net earnings computed using absorption costing and net earnings computed under direct costing? * , Absorption costing considers all costs in the determination of net earnings whereas direct costing considers only direct costs. Absorption costing allocates fixed costs between costs of goods sold and inventories, and direct costing considers all fixed costs to be period costs. Absorption costing "inventories" all fixed costs for the period in ending finished goods inventory, but direct costing expenses all fixed costs. O Absorption costing "inventories" all direct costs, but direct costing considers direct costs to be period costs.

What factor, related to manufacturing costs, causes the difference in net earnings computed using absorption costing and net earnings computed under direct costing? * , Absorption costing considers all costs in the determination of net earnings whereas direct costing considers only direct costs. Absorption costing allocates fixed costs between costs of goods sold and inventories, and direct costing considers all fixed costs to be period costs. Absorption costing "inventories" all fixed costs for the period in ending finished goods inventory, but direct costing expenses all fixed costs. O Absorption costing "inventories" all direct costs, but direct costing considers direct costs to be period costs.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter3: Cost Behavior And Cost Forecasting

Section: Chapter Questions

Problem 21BEA: Inventory Valuation under Absorption Costing Refer to the data for Judson Company above. Required:...

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For which cost concept used in applying (he cost-plus, approach to product pricing are fixed manufacturing costs, fixed selling and administrative expenses, and desired profit allowed for in determining the markup? A. Total cost B. Product cost C. Variable cost D. Standard cost
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In the variable costing income statement, how are the fixed manufacturing costs reported, and how are the fixed selling and administrative expenses reported?
Inventory Valuation under Absorption Costing Refer to the data for Judson Company above. Required: 1. How many units are in ending inventory? 2. Using absorption costing, calculate the per-unit product cost. 3. What is the value of ending inventory under absorption costing? Use the following information for Brief Exercises 3-21 and 3-22: During the most recent year, Judson Company had the following data associated with the product it makes:
When might activity-based costing be preferred over using a relative amount of product sales in allocating selling and administrative expenses to products?
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Absorption-Costing Income Statement Refer to the data for Osterman Company above. Required: 1. Calculate the cost of goods sold under absorption costing. 2. Prepare an income statement using absorption costing. Use the following information for Brief Exercises 3-23 and 3-24: During the most recent year, Osterman Company had the following data:
Inventory Valuation under Variable Costing Refer to the data for Judson Company above. Required: 1. How many units are in ending inventory? 2. Using variable costing, calculate the per-unit product cost. 3. What is the value of ending inventory under variable costing? Use the following information for Brief Exercises 3-21 and 3-22: During the most recent year, Judson Company had the following data associated with the product it makes:
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.
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Which is nor needed to compute equivalent units of production? A. the percentage of completion for inventory still in process B. the number of units transferred out C. the number of units started and completed D. the material cost per unit