Which of the following is NOT true of variable costing? a. Profits may increase though sales decrease. b. Profits fluctuate with sales. c. The cost of the product consists of all variable production costs

Which of the following is NOT true of variable costing? a. Profits may increase though sales decrease. b. Profits fluctuate with sales. c. The cost of the product consists of all variable production costs

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 20MC: Product costs under variable costing are typically: A. higher than under absorption costing B. lower...

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Question

Which of the following is NOT true of variable costing?

a. Profits may increase though sales decrease.

b. Profits fluctuate with sales.

c. The cost of the product consists of all variable production costs.

d. The income statement under variable costing does not include overhead volume variance.

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