When the units produced is greater than the units sold, A. some variable manufacturing overhead costs are deferred until a future period when using absorption costing. B. variable and fixed manufacturing overhead costs are deferred until a future period when using absorption costing.  C. some fixed manufacturing overhead costs are deferred until a future period when using absorption costing. D. variable and fixed manufacturing overhead costs are deferred until a future period when using variable costing.

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 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: Under absorption costing, fixed manufacturing overhead costs are: A. are deferred in inventory when…

A: Absorption costing method :— Under this method, product cost is calculated by adding direct…

Q: Which of the following statements is TRUE? O A. Variable costs per unit decrease as production…

A: Total Variable cost are the cost which changes with change in production volume . Fixed cost do not…

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: 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: Time-driven ABC requires estimates of onl

A: Time-Driven Activity-Based Costing-: Time-driven ABC allows managers to document their expenses on…

Q: What is the definition of a variable cost? Multiple Choice The total cost (materials, labor, and…

A: The costs incurred for the production are classified as fixed and variable components. The variable…

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: For costs that vary with production level in the short term, the cost driver will be: a. Service…

A: Solution- Under Activity Based Costing, the costs are classified as short term variable costs and…

Q: Why is absorption costing the method allowable for GAAP yet managers prefer variable costing

A: In variable costing only variable costs are included in the product cost. Fixed costs re considered…

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: Explain the effect of a decrease in the level of activity (cost driver) on: (i) total fixed cost…

A: Lets understand the basics. Fixed cost are cost which do not change with level of output. In other…

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: Under-applied manufacturing overhead costs are always the result of which of the following…

A: Actual overhead is the actual expense incurred related to the overhead during the period whereas…

Q: Which of the following about the residual switch cost is true? a. The residual switch cost decreases…

A: The residual switch cost refers to the performance decrement that remains even after accounting for…

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: Costs that change in total but not proportionately with changes in the activity level are mixed…

A: The costs incurred during the production process can be classified as fixed, variable and mixed…

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: One disadvantage of activity-based costing is that it cannot be used for external reporting. This is…

A: Introduction Activity based Costing (ABC) is a method of assignment of overhead costs to the…

Q: A fixed cost total rises or falls in approximate proportion to changes in activity base. Select one:…

A: The costs incurred can be defined as fixed Cost and variable cost

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: In your own words, explain the difference between absorption costing and variable costing methods.…

A: Absorption costing: Its also called as Full costing.

Q: Which of the following statement about Activity Based Costing is true? a)  Costs which change with…

A: In the activity level costing the indirect cost is allocated on the basis of their activity. for…

Q: Employee training is an example of discretionary fixed costs. Select one: True False

A: Hi student Since there are multiple questions, we will answer only first question.

Q: Variable manufacturing overhead costs are treated as period costs under both absorption and variable…

A: Variable manufacturing overhead cost is treated as product cost under both absorption and variable…

Q: Which of the following statements are true? Multiple select question. Within the relevant range…

A: The objective of the question is to identify the correct statements about fixed costs in the context…

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.

Q: Assuming that direct labor is a variable cost, the primary difference between the absorption and…

A: Major difference between absorption and variable costing is fixed cost allocation across all units…

Q: Variable Costing differs from Full Absorption Costing in that it applies: A. all fixed and variable…

A: Variable costing is a cost accounting method where only variable manufacturing costs, such as direct…

Q: Activity Based Costing (ABC) is an alternative method for allocating costs to products by…

A: Activity based costing is also known as ABC COSTING . Traditional costing applies an predetermined…

Q: Please indicate which are product costs and which are period costs.   Under Absorption Costing:…

A: Solution:- Under Absorption Costing:- Absorption costing consists direct materials, direct labor,…

Q: Marginal costing is usually deployed when decisions about volume are being made. Discuss the…

A: Monetary Accounting has appeared with the advancement of huge scope business   as business entities.…

Management by Exception

A manager’s job is a very tough one. A manager needs to look at the various areas of work and as a manager he has to look after two or more important jobs or activities at the same time for the growth of the business. In order to do all these things in an effective manner, a manager must adopt or practice different management styles and tactics.