Matching
Matching
Premises:
Treats fixed manufacturing cost as a period cost.
May be used in a manufacturing company.
Treats fixed selling cost as a period cost.
Generally provides the most useful report for controlling costs.
Includes gross profit on the income statement.
Operating income is impacted by changes in inventory level.
Required by generally accepted accounting principles.
Generally provides the most useful report for setting long-term prices.
Responses:
Absorption costing only
Both absorption and variable costing
Variable costing only
Correct Answer:
Premises:
Responses:
Treats fixed manufacturing cost as a period cost.
May be used in a manufacturing company.
Treats fixed selling cost as a period cost.
Generally provides the most useful report for controlling costs.
Includes gross profit on the income statement.
Operating income is impacted by changes in inventory level.
Required by generally accepted accounting principles.
Generally provides the most useful report for setting long-term prices.
Premises:
Treats fixed manufacturing cost as a period cost.
May be used in a manufacturing company.
Treats fixed selling cost as a period cost.
Generally provides the most useful report for controlling costs.
Includes gross profit on the income statement.
Operating income is impacted by changes in inventory level.
Required by generally accepted accounting principles.
Generally provides the most useful report for setting long-term prices.
Responses:
Related Questions
Q2: Based upon the following data taken from
Q8: A business operated at 100% of capacity
Q9: The following data are for Trendy Fashion
Q14: If sales totaled $800,000 for the year
Q18: Which of the following is not true
Q26: In a service firm, it may be
Q28: Under variable costing, which of the following
Q45: What term is commonly used to describe
Q89: For a period during which the quantity
Q133: In the absorption costing income statement,deduction of