Indicate whether each of the following statements is true or false. Under variable costing, the cost of inventory includes variable product costs and variable selling and administrative expenses. ______Under absorption costing, the income statement is prepared using a contribution margin approach. ______Variable costing is not allowed for external financial reporting, but many companies find it useful for internal managerial reports. ______Under absorption costing, fixed manufacturing costs are expensed in the period incurred. ______Under variable costing, fluctuations in sales influence net income, but fluctuations in production do not. ______
What will be an ideal response?
Under variable costing, the cost of inventory includes variable product costs and variable selling and administrative expenses. F
Under absorption costing, the income statement is prepared using a contribution margin approach. F
Variable costing is not allowed for external financial reporting, but many companies find it useful for internal managerial reports. T
Under absorption costing, fixed manufacturing costs are expensed in the period incurred. F
Under variable costing, fluctuations in sales influence net income, but fluctuations in production do not. T
You might also like to view...
Exhibit 11-1 On January 1, Year 1, Hills purchased equipment for $350,000. The equipment had an estimated useful life of ten years and an estimated residual value of $50,000. Use the double-declining-balance method to answer the following question(s). ? ? Refer to Exhibit 11-1. How much depreciation should Hills record on the asset in year 1?
A) $35,000 B) $30,600 C) $60,000 D) $70,000
Explain the concept of a "stipulation" as it relates to the manner of communicating acceptance, including the effect a stipulation has on the formation of a contract.
What will be an ideal response?
The retailer's order is transmitted to the distribution system via computers. Then, the computer at the distribution center creates a ________, a document or display on a screen in the forklift truck that indicates how many cartons to get from specific storage areas.
A. selection order B. selection list C. pick ticket D. sorting order E. requisition order
The use of arbitration in employment-related situations can be considered unfair because it is the employers who often select the arbitrators.
Answer the following statement true (T) or false (F)