TRUE OR FALSE A production volume variance appears in the variable costing method but not in absorption costing method

Q: Operating profit is affected by changes in production under both the variable costing and absorption…

A: Operating profit is profit earned by the company from its primary or core purpose of the business.…

Q: P-M:1-37B Preparing a schedule of cost of goods manufactured and an income statement for a…

A: "Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: What distinction must be made when computing the materials price variance vs. the materials quantity…

A: The answer for the theory question on material price and quantity variances is discussed hereunder :…

Q: An input whose cost is determined by the quantity of input consumed is a A. Fixed cost E Variable…

A: Step costs are- constant upto certain point and change to certain amount after that point. Fixed…

Q: The material price variance is computed by multiplying the difference between the actual price and…

A: GIVEN   Material Price Variance is the difference between the actual cost of Material purchased and…

Q: Which of the following is not a true statement about variable costs? O a. Total cost is known to…

A: Variable Cost Variable cost which is described as the cost which are incurred to the business entity…

Q: Marginal Costing

A: Option a is wrong because marginal costing is not a technique of cost reduction. Cost reduction…

Q: When using a standard cost system what term is used to denote that the actual cost is less than the…

A: Standard cost is calculated using estimated amounts. If the actual cost is less than the standard…

Q: How can the concept of a composite unit be used to explain why an unfavorable total sales-mix…

A: Sales mix variance: The difference between a budgeted and actual sales mix. Sales mix is a…

Q: The materials price variance should be computed when materials are purchased. Group of answer…

A: Variance: The difference between the actual cost or price and the budgeted (standard) cost or price…

Q: Explain why a favorable sales-quantity variance occurs.

A: Explain the reason for the occurrence of favorable sales quantity variance:When actual sales exceed…

Q: Within the relevant range, A B D variable cost per unit increases as production decreases variable…

A: VARIABLE COST Variable cost are costs that changes as the Volume Changes.  Variable Cost is…

Q: The controllable variance measures a. operating results at more than normal capacity b. operating…

A: Standard costs are estimates of the actual costs in a company’s production processThen, the actual…

Q: exceeded the units produced, then income under direct costing will be higher than absorption costing…

A: In throughput costing , only direct raw material is considered as a variable cost. It is the only…

Q: How are overhead variances useful in nonmanufacturing settings? Can you think of an example?

A: All overhead variances, even those incurred outside the manufacturing function, are undoubtedly…

Q: TRUE OR FALSE When absorption costing is used for external reporting, variable costing can still be…

A: There are various approaches which can be prepared for reporting purpose. Two of which are variable…

Q: 1. What is the activity variance for the revenue? (Indicate the effect of each variance by selecting…

A: Variance analysis is one of the important technique of management accounting analysis, under which…

Q: TRUE OR FALSE Net income under variable costing is unaffected by changes in production levels.

A: in variable costing fixed manufacturing overhead are exclude from the cost of production

Q: Variable costs per unit are affected by an increase or decrease in activity. True or False True…

A: Variable Cost is that type of cost which is associated with the number of units produced or volume…

Q: The term "relevant range" means the range over which: a particular cost formula is valid. production…

A: Lets understand the basics.Cost accounting is that branch of accounting in which all costs incurred…

Q: Under variable costing system only those costs of production that vary (variable) with production…

A: Variable costing is also called marginal costing. Under variable costing all variable cost that is…

Q: Which of the following underlying assumptions form(s) the basis for gross profit variance analysis?…

A: Gross profit variance analysis is defined as the one which analyse the profit variance that comprise…

Q: The difference between the actual costing and normal costing methods is that actual costing uses a…

A: Actual costing is a costing method that assigns actual direct costs and actual indirect costs…

Q: When the total direct labor cost variance is unfavorable, the direct labor rate variance will (must)…

A: Honor Code: Since you have asked multiple questions, we will solve the first question for you. If…

Q: The variable overhead spending variance has to do with the efficient use of The overhead items. All…

A: Variance: The difference between the actual cost or price and the budgeted (standard) cost or price…

Q: In the cost equation TC = F + VX, “V” is best described as the:    Multiple Choice   intercept…

A: The objective of the question is to identify the correct description of 'V' in the cost equation TC…

Q: The analysis of variance is an essential management accounting approach used to determine the cost…

A: Management accounting is all about using financial information and analysis to help managers make…

Q: Describe the differences in the ways that prior-period costs and output are treated under the…

A: Process costing is one of the costing technique which is used for products which has to go through…

Q: Parallel Enterprises has collected the following data on one of its products. During the period the…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…