UNDER VARIABLE COSTING, PRODUCING MORE UNITS THAN THE NUMBER OF UNITS SOLD IN A PERIOD WILL: A. CAUSE NET OPERATING INCOME FOR THE PERIOD TO DECREASE. B. CAUSE NET OPERATING INCOME FOR THE PERIOD TO INCREASE. C. HAVE NO EFFECT ON NET OPERATING INCOME FOR THE PERIOD.

Which of the following statements is true for a firm that uses variable costing? A. The cost of a unit of product changes because of changes in number of units manufactured.B. Profits fluctuate with sales.C. An idle facility variation is calculated.D. Product costs include variable administrative costs.

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

Which of the following is NOT true of variable costing?     a. Profits may increase though sales decrease.       b. Profits fluctuate with sales.       c. The cost of the product consists of all variable production costs.       d. The income statement under variable costing does not include overhead volume variance.

Under variable costing: a. Net operating income will always be higher than under absorption costing. b. Net operating income will tend to move up and down in response to changes in levels of production. O c.Inventory costs will be lower than under absorption costing. d. Net operating income will tend to vary inversely with production changes

When unit sales are constant, but the number of units produced fluctuates and everything else remains the same, net operating income under variable costing will: Multiple Choice   fluctuate in direct proportion to changes in production.   remain constant.   fluctuate inversely with changes in production.   be greater than net operating income under absorption costing.

Over extended periods of time, the net income figures reported under absorption costing will be: a. Equal to net income reported under variable costing b. Higher or lower because no generalization can be made c. Less than net income reported under variable costing d. Greater than net income reported under variable costing

general Account posted

What is characteristic of variable costs within the relevant range?   A. Decrease in total as as output increases   B. Stay constant in total as output increases   C. Decrease on a per-unit basis as output increases     D. Stay constant on a per-unit basis as output changes

Which of the following defines variable cost behavior?a. Total cost reaction to increase in activity (Remain Constant); Cost per unit reaction toincrease in activity (Remains Constant)b. Total cost reaction to increase in activity (Remain Constant); Cost per unit reaction toincrease in activity (Increases)c. Total cost reaction to increase in activity (Increases); Cost per unit reaction to increasein activity (Increases)d. Total cost reaction to increase in activity (Increases); Cost per unit reaction to increasein activity (Remains Constant)