FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 20: Variable Costing for Management Analysis

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 71

Multiple Choice

Review LaterAdd Note

Review Later

A business operated at 100% of capacity during its first month, with the following results: Operating expenses: -What is the amount of the gross profit that would be reported on the absorption costing income statement?

A) $21,000
B) $18,900
C) $27,900
D) $18,000

E) All of the above
F) B) and C)

Correct Answer

verified

Show Answer

Question 72

True/False

Review LaterAdd Note

Review Later

On the variable costing income statement, variable selling and administrative expenses are deducted from manufacturing margin to yield contribution margin.

A) True
B) False

Correct Answer

verified

Show Answer

Question 73

True/False

Review LaterAdd Note

If the ability to sell and the amount of production facilities devoted to each of two products is equal, it is profitable to increase the sales of that product with the highest contribution margin.

A business operated at 100% of capacity during its first month and incurred the following costs: If 2,000 units remain unsold at the end of the month and sales total $300,000 for the month, what is the amount of the manufacturing margin that would be reported on the variable costing income statement?

In determining cost of goods sold, two alternate costing concepts can be used: direct costing and variable costing.

The absorption costing income statement does not distinguish between variable and fixed costs.

The taxes on the factory superintendent's salary would be included as part of the cost of products manufactured under the variable costing concept.

A business operated at 100% of capacity during its first month and incurred the following costs: If 75 units remain unsold at the end of the month, what is the amount of inventory that would be reported on the absorption costing balance sheet?

The actual price for a product was $50 per unit, while the planned price was $44 per unit. The volume increased by 4,000 to 60,000 total units. Determine a) the quantity factor and b) the price factor for sales.

For a supervisor of a manufacturing department, which of the following costs is controllable?

Under variable costing, which of the following costs would not be included in finished goods inventory?

In the long run, for a business to remain in operation, the revenues from products sold should normally cover all costs and expenses and provide a reasonable income.

MATCHING -Treats fixed manufacturing cost as a period cost.

MATCHING -Generally provides the most useful report for setting long-term prices.

In the absorption costing income statement, deduction of the cost of goods sold from sales yields gross profit.

In the contribution margin analysis, the effect of a change in the number of units sold, assuming no change in unit sales price or unit cost, is referred to as the:

The factory superintendent's salary would be included as part of the cost of products manufactured under the absorption costing concept.

For a period during which the quantity of product manufactured equals the quantity sold, income from operations reported under absorption costing will be smaller than the income from operations reported under variable costing.

Under absorption costing, which of the following costs would not be included in finished goods inventory?

A business operated at 100% of capacity during its first month, with the following results: Operating expenses: -What is the amount of the income from operations that would be reported on the variable costing income statement?