Which of the following is an advantage of using variable costing? * a. Variable costing complies with the Philippine NIRC. b. Variable costing complies with generally accepted accounting principles. c. Variable costing
Q: variable
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A: Introduction:- Management (or management) is the administration of a company, whether for-profit,…
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A: The correct answer is Option (a).
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A: Answer: Some companies--partiicularly in service industries-- use a variiation of cost and pricing…
Q: When should a company use absorption costing when setting sales prices? When should it use variable…
A: Variable Costing: "Variable costing is a method that allocates only variable manufacturing costs to…
Q: “Companies that make no variable-cost/fixed-cost distinctions must use absorption costing, and those…
A: Variable Costing:The variable costing is a method used to allocate the fixed manufacturing overhead…
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: Explain the difference between absorption costing and variable costing. Why is absorption costing…
A: Variable costs are the costs that vary with the change in output of the company.
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 costing method, absorption or variable, would show higher operating income and by what amount?…
A: The difference of net income between absorption and variable costing occurs due to only fixed…
Q: What is the main difference between absorption costing and variable costing system. How does…
A: Absorption costing is a method of costing used to account for all manufacturing costs particular to…
Q: When the number of units sold exceed the number of units produced, income reported under absorption…
A: Fixed overhead costs include those costs which shall not vary with the production output. In…
Q: Which of the following is NOT a problem associated with standard cost accounting? a. Standard…
A:
Q: In target costing, prices determine costs rather than vice versa." Explain. Question content…
A: Target costing involves the calculation of an allowable product cost to earn a predetermined amount…
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A: CVP Analysis: CVP analysis establishes the relation between cost, volume and profit of the…
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A: Introduction: Fixed cost: The type of cost is fixed. It remains fixed irrespective of volume…
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A: Target Costing and Kaizen Costing to improve its future performance by the following manner –…
Q: Special order, opportunity cost. In order to determine whether a special order should be accepted at…
A: Opprtunity cost should be consider while accepting special order. As order is received at full…
Q: Employee training is an example of discretionary fixed costs. Select one: True False
A: Hi student Since there are multiple questions, we will answer only first question.
Q: Which method is required by GAAP for external financial statements? ANSWER Absorption…
A: Variable costing: In variable costing the fixed manufacturing overheads are not to be considered.…
Q: When a traditional, volume-based costing system is used, which of the following products is most…
A: Accounting: Accounting is the art of recording, classifying and summarizing in a significant…
Q: variable costing
A: What will be the difference in net earnings computed using variable costing as opposed toabsorption…
Q: When a traditional, volume-based costing system is used, which of the following products is most…
A: Traditional costing is the allocation of factory overhead to products based on the volume of…
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: Which of the following statements is not true regarding the use of variable and absorption costing…
A: Absorption costing: It refers to the method of product costing in which the price of the product is…
Q: It known that variable costing should be used for pricing purposes. What is the benefit of using…
A: There are mainly two types of Costing systems that are variable costing and absorption costing.…
Q: Product costs under variable costing are typically: Group of answer choices A. higher than under…
A:
Q: Target costing A target cost is 'a product cost estimate derived by subtracting the desired profit…
A: Target costing: A costing system that emphasizes on the minimization of existing and future design…
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…
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A: Monetary Accounting has appeared with the advancement of huge scope business as business entities.…
Q: The difference between absorption costing and variable costing is: Question 5 options: the…
A: Solution: The difference between absorption costing and variable costing is "the treatment of fixed…
Q: A basic belief of variable costing is that period costs should be currently expensed. What is the…
A: A variable cost is one of the important method related to costing. Basically it is a expense of a…
Q: Appendix 12A) Which of the following items are included in the cost base under the absorption…
A: Under absorption costing, the cost of goods include fixed and variable production cost.
Q: A range of costing methods have been considered in the module. Which of the following statements is…
A: Following is the answer to the given question
Q: Which of the following statements is not true regarding the use of variable and absorption costing…
A: Answer: Option d.
Q: Which of the following is NOT an assumption of cost-volume-profit analysis? Question 10…
A: The question is based on the concept of Cost Accounting.
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: Marginal costing is a technique that distinguishes between variable costs and fixed costs. In this…
A: Cost-volume-profit (CVP) analysis is an important and systematic method that provides useful…
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: Throughput costing • Treats all cost as period cost except for direct materials • Is very suitable…
A: Variable Costing: Variable Costing is technique of costing which does not considers the fixed cost…
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: Variable costing has an advantage over absorption costing for which of the following purposes? all…
A: Under variable costing, the product cost consists of the variable cost incurred and total fixed cost…
Q: TRUE OR FALSE Companies that use just-in-time processing techniques will have significant…
A: A just-in-time inventory system is an inventory management system wherein the company makes the…
Q: What from the upcoming options will be made when using the traditional costing method, relatively to…
A: Traditional Costing Method: The traditional costing methodology, which is focused on assigning…
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- Discuss how, as warehouse manager for Vinnies Vinyls, you view the different rate of allocated costs the warehouse is being charged compared to the West store. Describe the implications of this. What steps could you take to solve this discrepancy? What alternatives would you consider, assuming management is willing to consider making changes in the rate?Discuss how financial data prepared on the basis of variable costing can assist management in the development of short-run pricing policies.Which of the following statements regarding absorption and variable costing is correct? A Absorption costing results in higher income when inventory increases. B Variable manufacturing costs are lower under absorption costing. C Overhead costs are treated in the same manner under both variable and absorption costing methods. D Profits are always the same under two costing methods.
- Which of the following is not a potential advantage of variable costing relative to absorption costing? Net income calculated under variable costing is not closely tied to changes in sales levels. Net income calculated under variable costing is unaffected by changes in production levels. It is easier to understand the impact of fixed and variable costs on the computation of net income when variable costing is used. The use of variable costing is consistent with cost-volume-profit analysisT, F. In a make or buy short-run decision situation, the critical element to consider is whether the variable cost to produce the item is higher or lower the competitor’s selling price. T, F. In absorption costing method, gross margin is the term used to describe the difference between sales and variable costs. T, F. In Variable costing method, contribution margin is used to describe the difference between sales and variable costs. T, F. Although variable costing may provide useful information for internal controls and pricing, it is not generally accepted inventory valuation system by IRS and AICPA. T, F. One of the disadvantages of Variable Costing method is that it ignores the principle of matching revenues with related costs.Which of the following is not a potential advantage of variable costing relative absorptioncosting?a. Net income computed under variable costing is unaffected by changes productionlevels.b. It is easier to understand the impact of fixed and variable costs on computation of netincome when variable costing is used.c. The use of variable costing is consistent with cost-volume-profit analysis.d. Net income computed under variable costing is not closely tied to changes in sales level.
- How important is it to trace costs appropriately? Explain. As you are beginning to think about the importance of tracing costs appropriately, please consider the differences between variable costing and absorption costing. What implications does each of these have on such things as financial reporting of profit and pricing your products for the marketplace?What is the basic difference between variable costing and absorption costing?a. Variable costing always produces less taxable income that absorption costing.b. Variable costing recognizes fixed costs as a period cost and absorption costingrecognizes fixed costs as a product cost.c. Variable costing cannot use standards, whereas standards may be used with absorptioncosting.d. Variable costing may be used only in situations where production is essentiallyhomogenous, but absorption costing may be used under any manufacturing condition.a difference in cost-plus pricing and target costing is that target costing starts with the price customers are willing to pay whereas cost-plus pricing starts with the cost. computes the desired markup while cost-plus pricing computes the maximum cost the company is willing to incur. is generally determined after introducing a product and cost-plus pricing is determined before introducing a product. is a simple approach while cost-plus pricing is relatively complex.
- Which of the followings is not correct about cost-based pricing? Select one: a. Total fixed costs change as the production amount changes. b. Total costs are the sum of total fixed and variable costs. c. Total variable costs increase due to a rise in production level. d. Variable costs per unit tend to be constant with respect to number of units produced.Which of the following statement is correct? A In a variable costing income statement, sales revenue is typically higher than in absorption costing income statement. B When production is not equal to sales, income under absorption costing differs from income under variable costing due to the difference in treatment ( product cost and period cost) of the fixed overhead cost under the two costing methods. C In variable costing system, fixed overhead cost is included as part of the cost of inventory. D In an absorption costing system, fixed overhead cost is treated as a period cost.Which of the following statement is false? O The only difference between absorption costing and variable costing is howthe variable MOH is treated. O A traditional income statement uses absorption costing, where both variableand fixed manufacturing costs are included when calculating the productcost. O For external financial reporting purposes, GAP requires the traditionalformat income statement. O For external financial reporting purposes, companies need to classify theircosts as product costs or period costs following GAAP.
