Question 1

Under absorption costing,each unit of the company's inventory would be carried at:

Accepted Answer

A) $35. 
B) $55. 
C) $65. 
D) $84. 
E) some other amount. 
A) $35. 
B) $55. 
C) $65. 
D) $84. 
E) some other amount.

Question 2

For external-reporting purposes,generally accepted accounting principles require that net income be based on:

Accepted Answer

A) absorption costing. 
B) variable costing. 
C) direct costing. 
D) semivariable costing. 
E) activity-based costing. 
A) absorption costing. 
B) variable costing. 
C) direct costing. 
D) semivariable costing. 
E) activity-based costing.

Question 3

If Indiana uses absorption costing,the total inventoriable costs for the year would be:

Accepted Answer

A) $400,000. 
B) $460,000. 
C) $560,000. 
D) $620,000. 
E) $660,000. 
A) $400,000. 
B) $460,000. 
C) $560,000. 
D) $620,000. 
E) $660,000.

Question 4

The table that follows denotes selected characteristics of absorption costing and/or variable costing.

Accepted Answer

@#IMG-DLM& 
Changes to grid above:
Lower income wh

Question 5

Which of the following statements pertain to variable costing?

Accepted Answer

A) This method must be used for external financial reporting. 
B) Fixed manufacturing overhead is attached to each unit produced. 
C) The income statement discloses a company's contribution margin. 
D) Variable manufacturing overhead becomes part of a unit's cost. 
E) Statements "C" and "D" both pertain to variable costing. 
A) This method must be used for external financial reporting. 
B) Fixed manufacturing overhead is attached to each unit produced. 
C) The income statement discloses a company's contribution margin. 
D) Variable manufacturing overhead becomes part of a unit's cost. 
E) Statements "C" and "D" both pertain to variable costing.

Question 6

Carter reported $106,000 of income for the year by using variable costing.The company had no beginning inventory,planned and actual production of 50,000 units,and sales of 47,000 units.Standard variable manufacturing costs were $15 per unit,and total budgeted fixed manufacturing overhead was $150,000.If there were no variances,income under absorption costing would be:

Accepted Answer

A) $52,000. 
B) $97,000. 
C) $106,000. 
D) $115,000. 
E) $160,000. 
A) $52,000. 
B) $97,000. 
C) $106,000. 
D) $115,000. 
E) $160,000.

Question 7

Variable manufacturing overhead becomes part of a unit's cost when variable costing is used.

Accepted Answer

A) True 
 B)False

Question 8

Fixed manufacturing overhead is not inventoried under absorption costing.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following methods defines product cost as the unit-level cost incurred each time a unit is manufactured?

Accepted Answer

A) Throughput costing. 
B) Indirect costing. 
C) Process costing. 
D) Absorption costing. 
E) Back-flush costing. 
A) Throughput costing. 
B) Indirect costing. 
C) Process costing. 
D) Absorption costing. 
E) Back-flush costing.

Question 10

Which of the following conditions would cause absorption-costing income to be higher than variable-costing income?

Accepted Answer

A) Units sold exceeded units produced. 
B) Units sold equaled units produced. 
C) Units sold were less than units produced. 
D) Sales prices decreaseD. 
E) Selling expenses increased. 
A) Units sold exceeded units produced. 
B) Units sold equaled units produced. 
C) Units sold were less than units produced. 
D) Sales prices decreaseD. 
E) Selling expenses increased.

Question 11

Under absorption costing,each unit of the company's inventory would be carried at:

Accepted Answer

A) $49. 
B) $54. 
C) $72. 
D) $104. 
E) some other amount. 
A) $49. 
B) $54. 
C) $72. 
D) $104. 
E) some other amount.

Question 12

All of the following are inventoried under variable costing except:

Accepted Answer

A) direct materials. 
B) direct labor. 
C) variable manufacturing overhead. 
D) fixed manufacturing overheaD. 
E) items "C" and "D" abovE. 
A) direct materials. 
B) direct labor. 
C) variable manufacturing overhead. 
D) fixed manufacturing overheaD. 
E) items "C" and "D" abovE.

Question 13

Under variable costing,each unit of the company's inventory would be carried at:

Accepted Answer

A) $49. 
B) $54. 
C) $72. 
D) $104. 
E) some other amount. 
A) $49. 
B) $54. 
C) $72. 
D) $104. 
E) some other amount.

Question 14

The following data relate to Lebeaux Corporation for the year just ended:  
Which of the following statements is correct?

Accepted Answer

A) Lebeaux 's variable-costing income statement would reveal a gross margin of $270,000. 
B) Lebeaux 's variable costing income statement would reveal a contribution margin of $330,000. 
C) Lebeaux 's absorption-costing income statement would reveal a contribution margin of $330,000. 
D) Lebeaux 's absorption costing income statement would reveal a gross margin of $330,000. 
E) Lebeaux 's absorption-costing income statement would reveal a gross margin of $145,000. 
A) Lebeaux 's variable-costing income statement would reveal a gross margin of $270,000. 
B) Lebeaux 's variable costing income statement would reveal a contribution margin of $330,000. 
C) Lebeaux 's absorption-costing income statement would reveal a contribution margin of $330,000. 
D) Lebeaux 's absorption costing income statement would reveal a gross margin of $330,000. 
E) Lebeaux 's absorption-costing income statement would reveal a gross margin of $145,000.

Question 15

Which of the following product-costing systems is/are required for tax purposes?

Accepted Answer

A) Absorption costing. 
B) Variable costing. 
C) Throughput costing. 
D) Either absorption or variable costing. 
E) Either absorption,variable costing,or throughput costing. 
A) Absorption costing. 
B) Variable costing. 
C) Throughput costing. 
D) Either absorption or variable costing. 
E) Either absorption,variable costing,or throughput costing.

Question 16

Consider the following statements about absorption costing and variable costing:
I.Variable costing is consistent with contribution reporting and cost-volume-profit analysis.
II.Absorption costing must be used for external financial reporting.
III.A number of companies use both absorption costing and variable costing.
Which of the above statements is (are)true?

Accepted Answer

A) I only. 
B) II only. 
C) III only. 
D) I and II. 
E) I,II,and III. 
A) I only. 
B) II only. 
C) III only. 
D) I and II. 
E) I,II,and III.

Question 17

Moneka reported $65,000 of income for the year by using absorption costing.The company had no beginning inventory,planned and actual production of 20,000 units,and sales of 18,000 units.Standard variable manufacturing costs were $20 per unit,and total budgeted fixed manufacturing overhead was $100,000.If there were no variances,income under variable costing would be:

Accepted Answer

A) $15,000. 
B) $55,000. 
C) $65,000. 
D) $75,000. 
E) $115,000. 
A) $15,000. 
B) $55,000. 
C) $65,000. 
D) $75,000. 
E) $115,000.

Question 18

Consider the following comments about absorption- and variable-costing income statements:
I.A variable-costing income statement discloses a firm's contribution margin.
II.Cost of goods sold on an absorption-costing income statement includes fixed costs.
III.The amount of variable selling and administrative cost is the same on absorption- and variable-costing income statements.
Which of the above statements is (are)true?

Accepted Answer

A) I only. 
B) II only. 
C) I and II. 
D) II and III. 
E) I,II,and III. 
A) I only. 
B) II only. 
C) I and II. 
D) II and III. 
E) I,II,and III.

Under absorption costing,each unit of the company's inventory would be carried at:

For external-reporting purposes,generally accepted accounting principles require that net income be based on:

If Indiana uses absorption costing,the total inventoriable costs for the year would be:

The table that follows denotes selected characteristics of absorption costing and/or variable costing.

Which of the following statements pertain to variable costing?

Variable manufacturing overhead becomes part of a unit's cost when variable costing is used.

Fixed manufacturing overhead is not inventoried under absorption costing.

Which of the following methods defines product cost as the unit-level cost incurred each time a unit is manufactured?

Which of the following conditions would cause absorption-costing income to be higher than variable-costing income?

Under absorption costing,each unit of the company's inventory would be carried at:

All of the following are inventoried under variable costing except:

Under variable costing,each unit of the company's inventory would be carried at:

The following data relate to Lebeaux Corporation for the year just ended: Which of the following statements is correct?

Which of the following product-costing systems is/are required for tax purposes?

The Changing Role of Managerial Accounting in a Dynamic Business Environment

Basic Cost Management Concepts and Accounting for Mass Customization Operations

Product Costing and Cost Accumulation in a Batch Production Environment

Process Costing and Hybrid Product-Costing Systems

Activity-Based Costing and Management

Activity Analysis,cost Behavior,and Cost Estimation

Appendix I: The Sarbanes-Oxley Act, Internal Controls, and Management Accounting

Cost-Volume-Profit Analysis

Profit Planning and Activity-Based Budgeting

Standard Costing,Operational Performance Measures,and the Balanced Scorecard

Flexible Budgeting and the Management of Overhead and Support Activity Costs

Responsibility Accounting, Quality Control, and Environmental Cost Management

Investment Centers and Transfer Pricing

Decision Making: Relevant Costs and Benefits

Target Costing and Cost Analysis for Pricing Decisions

Capital Expenditure Decisions

Allocation of Support Activity Costs and Joint Costs

compound Interest and the Concept of Present Value

Inventory Management

Filters

Exam 8: Absorption and Variable Costing

Under absorption costing,each unit of the company's inventory would be carried at:

For external-reporting purposes,generally accepted accounting principles require that net income be based on:

If Indiana uses absorption costing,the total inventoriable costs for the year would be:

The table that follows denotes selected characteristics of absorption costing and/or variable costing.

Which of the following statements pertain to variable costing?

Variable manufacturing overhead becomes part of a unit's cost when variable costing is used.

Fixed manufacturing overhead is not inventoried under absorption costing.

Which of the following methods defines product cost as the unit-level cost incurred each time a unit is manufactured?

Which of the following conditions would cause absorption-costing income to be higher than variable-costing income?

Under absorption costing,each unit of the company's inventory would be carried at:

All of the following are inventoried under variable costing except:

Under variable costing,each unit of the company's inventory would be carried at:

The following data relate to Lebeaux Corporation for the year just ended: Which of the following statements is correct?

Which of the following product-costing systems is/are required for tax purposes?

The Changing Role of Managerial Accounting in a Dynamic Business Environment

Basic Cost Management Concepts and Accounting for Mass Customization Operations

Product Costing and Cost Accumulation in a Batch Production Environment

Process Costing and Hybrid Product-Costing Systems

Activity-Based Costing and Management

Activity Analysis,cost Behavior,and Cost Estimation

Appendix I: The Sarbanes-Oxley Act, Internal Controls, and Management Accounting

Cost-Volume-Profit Analysis

Profit Planning and Activity-Based Budgeting

Standard Costing,Operational Performance Measures,and the Balanced Scorecard

Flexible Budgeting and the Management of Overhead and Support Activity Costs

Responsibility Accounting, Quality Control, and Environmental Cost Management

Investment Centers and Transfer Pricing

Decision Making: Relevant Costs and Benefits

Target Costing and Cost Analysis for Pricing Decisions

Capital Expenditure Decisions

Allocation of Support Activity Costs and Joint Costs

compound Interest and the Concept of Present Value

Inventory Management

Filters