Question

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

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Correct answer-----------Variable costing treats fixed overhead as a period cost.

.

In variable costing all the fixed overhead are excluded from product cost and directly charged to income statement. In absorption costing on the other hand Fixed overhead are not period cost but considered as product cost.

Variable costing only includes Variable overhead in the product cost along with direct material and direct labor.

Variable costing treats fixed overhead as an expense in the period it is incurred.

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
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.
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.
Which of the following statements about variable costing systems is true? A.    Variable overhead costs...
Which of the following statements about variable costing systems is true? A.    Variable overhead costs are treated as period costs B.    Fixed overhead costs are treated as product costs C.    Only direct materials and direct labor are included in total cost D.    Fixed overhead costs are treated as period costs
Which of the following is true about absorption costing? a. No fixed factory overhead is charged...
Which of the following is true about absorption costing? a. No fixed factory overhead is charged to production b. It is also known as direct costing c. The term used to designate the difference between sales and cost of goods sold is the "manufacturing margin." D. Overapplied factory overhead is reflected in the income statement as a reduction cost of goods sold. Which of the following would cause the break-even point to change? a. Sales volume increased. b. Fixed costs...
Which of the following statements is true? Multiple Choice Fixed costs are constant in total dollars....
Which of the following statements is true? Multiple Choice Fixed costs are constant in total dollars. Fixed costs are constant on a per unit basis. Variable costs per unit decrease as activity volume increases. Variable costs are constant in total dollars.
Income Statements under Absorption Costing and Variable Costing Gallatin County Motors Inc. assembles and sells snowmobile...
Income Statements under Absorption Costing and Variable Costing Gallatin County Motors Inc. assembles and sells snowmobile engines. The company began operations on July 1 and operated at 100% of capacity during the first month. The following data summarize the results for July: Sales (16,000 units) $2,400,000 Production costs (21,000 units): Direct materials $1,165,500 Direct labor 558,600 Variable factory overhead 279,300 Fixed factory overhead 186,900 2,190,300 Selling and administrative expenses: Variable selling and administrative expenses $339,500 Fixed selling and administrative expenses...
Under variable costing, ______________ costs are considered product costs. variable manufacturing overhead fixed manufacturing overhead fixed...
Under variable costing, ______________ costs are considered product costs. variable manufacturing overhead fixed manufacturing overhead fixed selling and administrative property tax on the administrative office
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 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...
Income Statements under Absorption and Variable Costing Shawnee Motors Inc. assembles and sells MP3 players. The...
Income Statements under Absorption and Variable Costing Shawnee Motors Inc. assembles and sells MP3 players. The company began operations on August 1 and operated at 100% of capacity during the first month. The following data summarize the results for August: Sales (17,000 units) $2,210,000 Production costs (22,000 units): Direct materials $1,058,200 Direct labor 508,200 Variable factory overhead 253,000 Fixed factory overhead 169,400 1,988,800 Selling and administrative expenses: Variable selling and administrative expenses $308,300 Fixed selling and administrative expenses 119,300 427,600...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT