Question

In which context is full (absorption) costing LEAST likely to be used? a.Financial reporting. b.Managerial accounting....

In which context is full (absorption) costing LEAST likely to be used?

a.Financial reporting.

b.Managerial accounting.

c.Income tax returns.

d.It must be used in all of the above situations.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

c. Income Tax Returns.

Explanation:

For Financial Reporting, absorption costing is used for valuation of inventory / stock which is shown in the Financial Statements of the organization. Further, absorption costing is also used to determine the cost of each product associated with a particular process which is further presented in the financial statements.

For Managerial Accounting, absorption costing is used for accounting all costs associated with a particular product viz, direct material, direct labor, other expenses. It is under this costing method that all the associated costs are accounted for by the organization.

For Income Tax Returns, there is no specific requirement of using the absorption costing.

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
Under generally accepted accounting principles, absorption costing is used for Job Costing     Process Costing              Yes      &nbs
Under generally accepted accounting principles, absorption costing is used for Job Costing     Process Costing              Yes                      Yes               No                       No               No                       Yes               Yes                      No
A manufacturing company using full-absorption costing can increase net income by which of the following. A)...
A manufacturing company using full-absorption costing can increase net income by which of the following. A) Increasing production and increasing ending inventory at the end of the year. B) Decreasing the inventory C) Writing ending inventory down to its fair value. D) All of the above.
which of the following is a disadvantage of using variable costing? A) two sets of accounting...
which of the following is a disadvantage of using variable costing? A) two sets of accounting records must be maintained B) inventory values tend to be overstated C) CVP relationships are more difficult to determine than under absorption costing D) per customer or per product contribution margin is obscured E) all of the above
which of the following is not a disadvantage of using variable costing as opposed to absorption...
which of the following is not a disadvantage of using variable costing as opposed to absorption costing A) Variable accounting records do not conform to GAAP so two sets of records must be maintained of the company is required to file their statements publicly B) owners equity tends to be understated C) accounting records are more costly to maintain D) only variable costs are assigned to inventory making poor management decisions E) none of the above are disadvantages
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 situations would cause variable-costing income to be lower than absorption-costing income? Group...
Which of the following situations would cause variable-costing income to be lower than absorption-costing income? Group of answer choices Units sold equalled 39,000 and units produced equalled 42,000. Sales prices decreased by $7 per unit during the accounting period. Units sold equalled 55,000 and units produced equalled 49,000. Units sold and units produced were both 42,000.
Which one of the following is least likely to be an objective of NFP reporting? A....
Which one of the following is least likely to be an objective of NFP reporting? A. Information should be useful in assessing whether the organization is in compliance with relevant laws. B. Information should useful in evaluating services provided. C. Information should be useful in assessing management performance. D. Information should be useful for making resource allocation decisions.
Which of the following is LEAST likely to create a book/tax difference? a. Payment of federal...
Which of the following is LEAST likely to create a book/tax difference? a. Payment of federal income tax b. State income tax expense in a tax loss year c. Vacation accruals under the recurring item exception d. All of the above are very likely to create a book/tax difference
Governmental reporting entity Which of the following entities is least likely to be included as a...
Governmental reporting entity Which of the following entities is least likely to be included as a blended component unit in a county government’s financial statements? Select one: Tobacco settlement financing authority, whose board members are appointed by the country County library, funded by general obligation bonds County building authority, whose board members are appointed by the county County water authority, funded by debt secured by water revenues
which of the following is likely to be a user information in a financial accounting system...
which of the following is likely to be a user information in a financial accounting system taxing authorities other businesses potential investors all of the above
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT