Question

Which of the following statements is false regarding absorption costing? Multiple Choice It assigns all manufacturing...

Which of the following statements is false regarding absorption costing?

Multiple Choice

  • It assigns all manufacturing costs, both fixed and variable, to units of product.

  • It is typically used for external financial reporting.

  • It relies on a predetermined overhead rate to apply direct material cost to units of product.

  • It treats all nonmanufacturing costs as period costs.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #2

Answer : Correct Option is It relies on a predetermined overhead rate to apply direct material cost to units of product.

Reason :

Absorption Costing assigns all manufacturing costs, both fixed and variable, to units of product.Under GAAp it is used for external financial reporting.and It treats all nonmanufacturing costs as period costs..Therefore only false staemet remaining is that It relies on a predetermined overhead rate to apply direct material cost to units of product.

answered by: anonymous
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A job-order costing system that relies on normal costing will: Multiple Choice Assign actual direct materials...
A job-order costing system that relies on normal costing will: Multiple Choice Assign actual direct materials and direct labor costs to jobs. Apply overhead cost to jobs by multiplying an actual overhead rate by the estimated amount of the allocation base incurred by the jobs. Apply overhead cost to jobs by multiplying an actual overhead rate by the actual amount of the allocation base incurred by the jobs. Apply overhead cost to jobs by multiplying a predetermined overhead rate by...
Which of the following statements is true? Multiple Choice Variable costing treats fixed overhead as a...
Which of the following statements is true? Multiple Choice Variable costing treats fixed overhead as a period cost. Absorption costing treats fixed overhead as a period cost. Absorption costing treats fixed overhead as an expense in the period it is incurred. Variable costing excludes all overhead from product costs. Managers can manipulate earnings more easily under variable costing by varying the production leve
Which of the following is true? Multiple Choice FIFO is always used for process costing. A...
Which of the following is true? Multiple Choice FIFO is always used for process costing. A partially completed product whose direct materials are added at the beginning of the process would be 0% complete with respect to direct materials. FIFO is never used in process costing. A partially completed product whose direct materials are added at the beginning of the process would be 100% compete with respect to direct materials. In activity-based costing, unit product costs computed for external financial...
Sparn Limited incurs the following costs to produce and sell a single product:   Variable costs per...
Sparn Limited incurs the following costs to produce and sell a single product:   Variable costs per unit:      Direct materials $ 10      Direct labour 5      Variable manufacturing overhead 2      Variable selling and administrative expenses 4   Fixed costs per year:      Fixed manufacturing overhead 90,000      Fixed selling and administrative expenses 300,000 During the last year, 30,000 units were produced and 25,000 units were sold. The Finished Goods Inventory account at the end of the year shows a balance of $85,000 for the 5,000...
A job-order costing system that relies on normal costing will: Multiple Choice Assign actual direct materials...
A job-order costing system that relies on normal costing will: Multiple Choice Assign actual direct materials and direct labor costs to jobs. Apply overhead cost to jobs by multiplying an actual overhead rate by the estimated amount of the allocation base incurred by the jobs. Apply overhead cost to jobs by multiplying an actual overhead rate by the actual amount of the allocation base incurred by the jobs. Apply overhead cost to jobs by multiplying a predetermined overhead rate by...
Which of the following is false regarding normal costing systems? Group of answer choices Unlike actual...
Which of the following is false regarding normal costing systems? Group of answer choices Unlike actual costing, a normal costing system assigns direct materials and labor costs to products using normal estimated costs. In a normal costing system, overhead is assigned using a predetermined overhead rate multiplied by an actual activity. A normal costing system estimates the total overhead cost to be occurred and the total activity to be performed during the period to set a predetermined overhead rate. A...
Which of the following is false about activity-based costing? Select one: a. It may assign nonmanufacturing...
Which of the following is false about activity-based costing? Select one: a. It may assign nonmanufacturing costs to products. b. It uses more cost pools. c. It can be used for external financial reporting. d. It does not assign all manufacturing costs to products.
Which of the following statements is true? A. Variable costing treats fixed overhead as a period...
Which of the following statements is true? A. Variable costing treats fixed overhead as a period cost. B. Absorption costing treats fixed overhead as a period cost. C. Absorption costing treats fixed overhead as an expense in the period it is incurred. D. Variable costing excludes all overhead from product costs. E. Managers can manipulate earnings more easily under variable costing by varying the production level.
Sierra Company incurs the following costs to produce and sell a single product. Variable costs per...
Sierra Company incurs the following costs to produce and sell a single product. Variable costs per unit: Direct materials $ 11 Direct labor $ 9 Variable manufacturing overhead $ 4 Variable selling and administrative expenses $ 5 Fixed costs per year: Fixed manufacturing overhead $ 88,500 Fixed selling and administrative expenses $ 300,000    During the last year, 29,500 units were produced and 25,000 units were sold. The Finished Goods inventory account at the end of the year shows a...
EXERCISE 6–13 Inferring Costing Method; Unit Product Cost LO6–1 Sierra Company incurs the following costs to...
EXERCISE 6–13 Inferring Costing Method; Unit Product Cost LO6–1 Sierra Company incurs the following costs to produce and sell its only product. Variable costs per unit: Direct materials ....................................... $9 Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $10 Variable manufacturing overhead ....................... $5...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT