Exam 4: Variable Costing and Segment Reporting: Tools for Management

A properly constructed segmented income statement in a contribution format would show that the segment margin of the Consumer business segment is:

Routsong Company had the following sales and production data for the past four years: Selling price per unit, variable cost per unit, and total fixed cost are the same in each year. Which of the following statements is not correct?

The total fixed expenses (traceable and common) for Canon Company for the year were:

For the month referred to above, net operating income under variable costing will be:

Hudalla Corporation produces a single product and has the following cost structure: Required: Compute the unit product cost under variable costing. Show your work!

The marketing department believes that a promotional campaign for Store H costing $8,000 will increase the store's sales by $15,000. If the campaign is adopted, overall company net operating income should:

The unit product cost under absorption costing was:

The total gross margin for the month under the absorption costing approach is:

The carrying value on the balance sheet of the ending finished goods inventory under absorption costing would be:

Under absorption costing, the unit product cost is:

A properly constructed segmented income statement in a contribution format would show that the net operating income of the company as a whole is:

What is the unit product cost for the month under variable costing?

Tsuchiya Corporation manufactures a variety of products. Last year, the company's variable costing net operating income was $57,500. Fixed manufacturing overhead costs deferred in inventory under absorption costing amounted to $35,400. What was the absorption costing net operating income last year?

For the period above, one would expect the net operating income under absorption costing to be:

Evans Company produces a single product. During the most recent year, the company had a net operating income of $90,000 using absorption costing and $84,000 using variable costing. The fixed overhead application rate was $6 per unit. There were no beginning inventories. If 22,000 units were produced last year, then sales for last year were:

Segmented statements for internal use should be prepared in the contribution format.

Hubiak Corporation produces a single product and has the following cost structure: Required: Compute the unit product cost under absorption costing. Show your work!

If Lemine produces and sells 7,000 units, what is the unit product cost under each of the following methods?

The company's net operating income for the year under variable costing is:

The total contribution margin for the month under the variable costing approach is: