Indicate Whether Each of the Following Statements Is True or False

Short Answer

Indicate whether each of the following statements is true or false.
In a period when finished goods decreases,use of absorption costing results in higher net income than variable costing.______
Direct materials and direct labor usually behave as variable costs.______
Generally accepted accounting principles allow a company to use either variable or absorption costing for external financial reporting.______
Under absorption costing,fixed manufacturing costs are expensed in the period incurred.______
Increasing the number of units produced during a period increases net income under absorption costing because the cost of goods sold decreases.______