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

Q: explain why GAAP requires full absorption costing (instead of variable costing) if absorption…

A: Introduction:- i)Absorption costing:- Under the absorption costing, The following costs included in…

Q: RUE OR FALSE Net income under GAAP highlights differences between variable and fixed costs.

A: Answer:   Net income under GAAP highlights differences between variable and fixed costs.   The…

Q: Variable cost varies _____ with output. a. Disproportionately b. Proportionately c. More than…

A: The different costs of production are classified as fixed costs and variable costs.  The fixed cost…

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: When absorption costing is used a. management may be tempted to overproduce in a given period in…

A: Absorption costing is a method of calculating the cost of a product or enterprise by taking into…

Q: When units produced are less than units sold, how does operating income differ between variable…

A: Absorption Costing: "Absorption costing is a method that allocates "direct labor, direct materials,…

Q: When Total Contribution magrin equals total fixed costs, this indicates operating income True…

A: If the contribution margin is equal to the total fixed cost that means it a situation of the…

Q: Under variable costing, how is it possible to increase net operating income without increasing sales

A: Introduction:- Under the Variable costing includes only variable manufacturing costs such as  direct…

Q: The following data were provided by Rider, Inc, which produces a single product that it sells for…

A: Absorption costing is that costing system under which product costs includes all manufacturing costs…

Q: The advantages of standard costing exceeds its disadvantages. True or false? Explain further

A: Standard Costing The primary purpose of implementing the cost accounting system to any organisation…

Q: elect one: a. Average fixed costs per unit fall as the level of activity rises. b. Average fixed…

A: Ans. Average fixed cost is measured by dividing the total fixed cost by the units of output…

Q: when total contribution margin equals total fixed cost this indicates operating income true false

A: First we understand contribution margin Contribution margin means Variable cost   deduct from Sales…

Q: Gross margin is to absorption costing as which of the following is too variable costing?   A.…

A: Variable costing uses Contribution Margin Income Statement by showing Sales – VARIABLE expenses =…

Q: True (t) or False (f) ______ LIFO is inappropriate where unit costs tend to decrease as production…

A: It is known as LIFO conformity rule that if a company used LIFO for tax purpose then it must also…

Q: Direct materials and direct labour costs are examples of: a. Variable costs of production b. Fixed…

A: The cost of production is generally classified into two broad categories which are fixed costs and…

Q: Which of the following describes the behavior of the fixed cost per unit?

A: Fixed cost is the cost which is doesnt change gets effects with the change in production which means…

Q: What is characteristic of variable costs within the relevant range?   A. Decrease in total as as…

A: Variable costs within the relevant range has following characteristics :- Total variable cost…

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: Costs that vary in proportion to volume changes but not directly are considered

A: Mixed Costs are the costs in which some of its component is fixed, i.e. it doesn't change with the…

Q: Explain why there is a difference in the operating profit and operating income under the two methods…

A: The product cost in an absorption costing method includes all variable and fixed production…

Q: Which of the following cost is not considered as period cost under marginal costing? Variable…

A: Marginal Costing: Marginal Costing is a costing technique whereby variable cost are charged to cost…

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: When will NOI under the variable costing method show higher income than under the absorption costing

A: Net Operating Income: It is a calculation used to assess the profitability of the business.

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: In a drop or continue decision, only the variable costs identified with a product are relevant in a…

A: The given statement is true.

Q: What are these equations? c.Under absorption costing, what is the cost of goods sold? d.Under…

A: Hey, since there are multiple subparts posted, we will answer the first three subparts. If you want…

Q: In economics, a fixed cost is a cost that O does not vary with the level of output. O goes down as…

A: The cost can be classified into two categories i.e fixed cost and variable cost. The  FIxed cost…

Q: Is there any way to show high net operating income without increasing sales under the absorption…

A: A method of costing that involves consideration of all the manufacturing costs for calculation of…

Q: TRUE OR FALSE In activity-based costing systems, costs are not classified as either direct or…

A: Answer:   In activity-based costing systems, costs are not classified as either direct or indirect…

Q: Direct costs can be referred to as fixed costs. True or False?

A: Cost are divided into two parts which are, (1) Direct cost (2) Indirect cost Direct costs are the…

Q: In CVP Analysis, total costs are defined as costs derived from product costs and period costs. TRUE…

A: Cost-volume-profit analysis is used to determine how the company's profit has been affected due to…

Q: Product costs under variable costing are typically: Group of answer choices A. higher than under…

A:

Q: Which of the following statements is CORRECT with respect to fixed costs per unit? Select one:…

A: Fixed cost in total remains constant.  They will not change by change in production.