Which of the following is not a potential advantage of variable costing relative absorption costing? a. Net income computed under variable costing is unaffected by changes production levels. b. It is easier to understand the impact of fixed and variable costs on computation of net income 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.

Q: variable

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

Q: Variable selling expenses are a. Product costs under variable costing but period costs under…

A: The correct answer is Option (a).

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: 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: Which one of the following is not considered an assumption of cost-volume-profit analysis? a. Sales…

A: Cost volume profit analysis enables the management in determining the relation of costs and revenues…

Q: When units produced are less than units sold, how does operating income differ between variable…

A: Absorption Costing: "Absorption costing is a method that allocates "direct labor, direct materials,…

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: Which one of the following is not considered an assumption of cost-volume-profit analysis? a.…

A:

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: 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: 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: TRUE OR FALSE When absorption costing is used for external reporting, variable costing can still be…

A: There are various approaches which can be prepared for reporting purpose. Two of which are variable…

Q: How lean production eliminate the difference between absorption and variable costing

A: Following is the answer to the given question

Q: Is this statement true or false? Can you please explain in detail. There is a difference between…

A: Firstly let us understand what is the theoretical production capacity is the optimum production…

Q: When will NOI under the variable costing method show higher income than under the absorption costing

A: Net Operating Income: It is a calculation used to assess the profitability of the business.

Q: Which of the following best describes a variable cost? A cost that: a. Represents a fixed…

A: Variable cost is the cost incurred during the production of units which will be directly…

Q: TRUE OR FALSE Net income under variable costing is unaffected by changes in production levels.

A: in variable costing fixed manufacturing overhead are exclude from the cost of production

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 units sold exceeds units produced the relationship between net income under absorption costing…

A: THE VARIABLE COSTING METHOD TREATS FIXED MANUFACTURING OVERHEAD COSTS AS PERIOD COSTS , ALL FIXED…

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: Please explain thoroughly the statement below. (True/false), how and why?  "When expressed on a…

A: POINTS TO BE NOTED -    ** Fixed cost will remain constant irrespective of change in the level of…

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: Which of the following is an advantage of using variable costing? *     a. Variable costing complies…

A: Variable costing distinct feature and advantage is that it enable to establish the cost volume…

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: 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: 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: Which one of the following is not an assumption of CVP analysis?   The behavior of costs and…

A: Cost Volume profit analysis is one of the means to find out how fixed costs and variable costs…

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 of the following option is correct regarding difference in activity-based costing when…

A: Simple costing and activity based costing does not yield in similar since the cost drivers will…

Q: Which of the following statements about CVP analysis is false? O a. Unit selling price, unit…

A: CVP analysis appearance at the impact of sales volume variations on prices and operative profit. The…

Q: Which of the following statements is true?   a. When production is greater than sales, operating…

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

Q: Which of the following is true of fixed and variable costs? Volume changes will not change the…

A: Fixed cost includes expenses that remain constant irrespective of the level of outputs, like rent,…

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: 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: A basic tenet of variable costing is that period costs should be currently expensed. What is the…

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

Q: Explain the difference between variable costing and absorption costing income statements. Provide a…

A: Difference Between Variable Costing and absorption costing income statements. Under Variable…

Q: Which of the following is not a feature of full cost plus sales pricing related to a range of a…

A: Following is the answer to the given question

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: 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: Which of the followings is not correct about cost-based pricing? Select one: a. Total fixed costs…

A: Cost based pricing is the method to set selling price based on the cost. To get selling price,…

Q: Which of the following statements about CVP analysis is false? O a. Operating income calculations in…

A: Cost-Volume-Profit (CVP) Analysis: It is a method followed to analyze the relationship between the…

Q: Which of the following is not an assumption underlying cost-volume-profit analysis?

A: Cost Volume Profit analysis- This analysis helps in understanding the cost and profit based on the…

Q: Which one of the following is not considered an assumption of cost-volume-profit analysis? a. Costs…

A: Option b is correct.