Which of the following statements is true for a company that uses variable costing? Profit fluctuates with sales. Product costs include variable administration costs. Any underapplied overhead is included in the product cost. The unit product cost changes because of changes in the number of units manufactured.

Which of the following statements is true for a company that uses variable costing? Profit fluctuates with sales. Product costs include variable administration costs. Any underapplied overhead is included in the product cost. The unit product cost changes because of changes in the number of units manufactured.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 20MC: Product costs under variable costing are typically: A. higher than under absorption costing B. lower...

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Product costs under variable costing are typically: A. higher than under absorption costing B. lower than under absorption costing C. the same as with absorption costing D. higher than absorption costing when inventory increases
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PLEASE ANSWER ALL. Write “True” if the statement is true and write “False” if the statement is false A fixed cost is constant per unit of product. Cost accumulation, cost allocation, and cost objects are interrelated. A variable cost remains constant per unit, though in total increases as activity levels increase.