Which of the following statements is false regarding absorption costing?
A) Variable overhead is treated as a product cost.
B) Absorption costing is required for external financial statements prepared in accordance with generally accepted accounting principles (GAAP).
C) Fixed manufacturing overhead is treated as a product cost.
D) Fixed manufacturing overhead is expensed in the period incurred.
D
You might also like to view...
Sara has been slacking at work. At the beginning of the quarter, Sara sits down with her manager and sets three goals. If Sara achieves those three goals in the next three months, she will receive a $1,000 bonus. Which advantage of individual incentives does this illustrate?
A. They make it easy to evaluate individual employees. B. They offer the ability to match rewards to employee desires. C. They promote the link between performance and results. D. They may motivate less productive employees to work harder.
A service’s goods–service package is defined by all of the following except?
a. Explicit service b. Supporting facility c. Implicit service d. Customer demand
Surviving dependents may have their Social Security benefits reduced or eliminated
A) if they are found guilty of a felony. B) if the surviving spouse were married to the decedent for less than five years. C) if they have substantial market earnings. D) for any of the reasons cited above.
Clemson Software is considering a new project whose data are shown below. The required equipment has a 3-year tax life, after which it will be worthless, and it will be depreciated by the straight-line method over 3 years. Revenues and other operating costs are expected to be constant over the project's 3-year life. What is the project's Year 1 cash flow? Do not round the intermediate calculations and round the final answer to the nearest whole number. Equipment cost (depreciable basis)$97,000 Straight-line depreciation rate33.333% Sales revenues, each year$60,000 Operating costs (excl. depr.)$25,000 Tax rate35.0% ?
A. $31,682 B. $29,979 C. $30,660 D. $36,792 E. $34,067