A reason why absorption costing income statements are sometimes difficult to interpret is that: Multiple Choice   they omit variable expenses entirely in computing net operating income.   they shift portions of fixed manufacturing overhead from period to period according to changing levels of inventories.   they include all fixed manufacturing overhead on the income statement each year as a period cost.   they ignore inventory levels in determining cost of goods sold.

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Sunland Products manufactures and sells a variety of camping products. Recently the company opened a new factory to manufacture a deluxe portable cooking unit. Cost and sales data for the first month of operation are shown below: Beginning inventory Units produced Units sold Manufacturing costs Fixed overhead Variable overhead Direct labour Direct material Selling and administrative costs Fixed Variable 0 units 11,200 10,100 $100,800 $3 $12 $28 $207,100 per unit. per unit per unit $3 per unit sold The portable cooking unit sells for $110. Management is interested in the opening month's results and has asked for an income statement.

The _________ is considered part of the cost of the product in absorption costing, but not in  variable costing.    Group of answer choices Variable Overhead Fixed Overhead Variable Selling & Administrative Fixed Selling and Administrative   In the absorption income statement, Sales less Cost of Goods Sold is the calculation for:   Group of answer choices Contribution margin Gross margin Net Income Operating Income

There would be a difference between the absorption operating income and variable operating income, if: Select one: O O a. There was an increase in period costs. b. A company sold less than the number of units produced in a given period. c. A company used the contribution margin statement instead of the conventional income statement. d. There was no beginning or ending inventories.

The cost of the ending inventory under absorption costing is higher than the cost of ending inventory under varibale costing by     1. an amount equal to the fixed overhead cost per unit. 2. an amount computed by multiplying the units in the ending inventory by the fixed costs per unit. 3. an amount equal to the difference in the income amounts under both costing methods. 4. the amount equal to the fixed overhead cost charged to expense during the period.