Multiple Choice
Which of the following is true of variable costing?
A) It expenses administrative costs as cost of goods sold.
B) It treats direct manufacturing costs as a product cost.
C) It includes fixed manufacturing overhead as an inventoriable cost.
D) It is required for external reporting to shareholders.
Correct Answer:
Verified
Correct Answer:
Verified
Q200: Explain how using master-budget capacity utilization for
Q201: _ is based on the level of
Q202: In variable costing, all nonmanufacturing costs are
Q203: If activity based cost accounting is used
Q204: Absorption costing helps managers to artificially inflate
Q205: Under variable costing, if a manager's bonus
Q206: If the variable manufacturing overhead is $50
Q208: To reduce the undesirable incentives to build
Q209: Absorption costing enables managers to increase operating
Q210: For benchmarking purposes for long-range planning, it