Assuming that direct labor is a variable cost, the primary difference between the absorption and variable costing is that:
A. variable costing treats direct materials, direct labor, the variable portion of manufacturing overhead, and an allocated portion of fixed manufacturing overhead as product costs while absorption costing treats only direct materials, direct labor, and the variable portion of manufacturing overhead as product costs.
B. variable costing treats only direct materials, direct labor, the variable portion of manufacturing overhead, and the variable portion of selling and administrative expenses as product cost while absorption costing treats direct materials, direct labor, the variable portion of manufacturing overhead, and an allocated portion of fixed manufacturing overhead as product costs.
C. variable costing treats only direct materials, direct labor, and the variable portion of manufacturing overhead as product costs while absorption costing treats direct materials, direct labor, the variable portion of manufacturing overhead, and an allocated portion of fixed manufacturing overhead as product costs.
D. variable costing treats only direct materials and direct labor as product cost while absorption costing treats direct materials, direct labor, and the variable portion of manufacturing overhead as product costs.
Answer: C
You might also like to view...
According to the cooperative principle, the ______ maxim controls our topics of talk and suggests that diverting focus or shifting “off topic” violates expectations of interaction.
a. quality b. quantity c. relevance d. manner
As a predictor of job dissatisfaction, nothing exceeds
A. relationships with co-workers. B. negative self-evaluations. C. negative affectivity. D. the geographical location of the firm. E. the nature of the task itself.
Davis Construction Inc Davis Construction began operation on January 1, 2012, with an initial investment of $100,000 from each of its three stockholders. During the year ending 2012 Davis Construction had net income of $125,000 and paid dividends of $50,000. Refer to the information provided for Davis Construction, Inc and calculate its retained earnings balance at December 31, 2012
A) $175,000 B) $ 75,000 C) $150,000 D) $275,000
The self-evaluation
a. Should consist of the employee rating himself/herself on the evaluation form b. Should be used word for word as the employee submits it c. Should be an opportunity for the employee to provide additional feedback about his/her performance d. Is not recommended for executive level positions