WHEN THE VARIABLE COSTING METHOD IS USED, FIXED FACTORY OVERHEAD APPEARS ON THE INCOME STATEMENT AS A: A. COMPONENT OF COST OF GOODS SOLD AND PRODUCTION VOLUME VARIANCE. B. COMPONENT OF COST OF GOODS SOLD. C. PRODUCTION VOLUME VARIANCE. D. FIXED EXPENSE.

Which is not a step in analyzing the cost driver for manufacturing overhead? A. Identify the cost B. identify non-value-added costs C. analyze the effect on manufacturing overhead D. identify the correlation between the potential driver and manufacturing overhead

Accumulating costs means that a. costs must be summed and entered on the income statement. b. each cost must be linked to some cost object. c. costs must be measured and tracked. d. costs must be allocated to units of production. e. costs have expired and must be transferred from the balance sheet to the income statement.

Using the costs listed in the previous problem, classify the costs as either product costs or period costs.

In assigning costs to goods transferred out, how do the weighted average and FIFO methods differ?

Subject:-- general account

cost account subjects

Under variable costing, all fixed manufacturing costs are treated as a a. product cost included in the cost of goods manufactured. b. product cost included in the cost of ending inventory. c. period expense deducted from manufacturing margin. d. period expense deducted from contribution margin.

Net income computed using absorption costing can be reconciled to the net income computed using variable costing by computing the difference between       a. the gross profit under absorption costing and contribution margin under variable costing.       b. the product costs per unit under the two costing methods.       c. inventoried fixed factory overhead costs in the beginning and ending finished goods inventories.       d. the selling prices under the two costing methods.

TRUE OR FALSE Production volume variance is adjusted to the cost of goods sold to get the cost of goods ed at actual under variable costing method.