Posted by matt on Friday, November 16, 2007 at 6:15pm.
someone help me with this questions please
1. How would the following costs be classified (product or period) under variable costing at a retail clothing store?
Cost of purchasing clothing Sales commissions
A) Product Product
B) Product Period
C) Period Product
D) Period Period
2. The principal difference between variable costing and absorption costing centers on:
A) whether variable manufacturing costs should be included as product costs.
B) whether fixed manufacturing costs should be included as product costs.
C) whether fixed manufacturing costs and fixed selling and administrative costs should be included as product costs.
D) none of these.
3. Which of the following costs at a manufacturing company would be treated as a product cost under the variable costing method?
A) direct material cost
B) property taxes on the factory building
C) sales manager's salary
D) all of the above
4. Assuming that direct labor is a variable cost, the primary difference between the absorption and variable costing is that:
A) 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.
B) 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.
C) 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.
D) 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.
5. The costing method that treats all fixed costs as period costs is:
A) absorption costing.
B) job-order costing.
C) variable costing.
D) process costing.
- ACC - Ms. Sue, Friday, November 16, 2007 at 6:17pm
If you tried to copy and paste the question, obviously it didn't work. Please type your question.
- ACC - matt, Friday, November 16, 2007 at 6:18pm
When sales are constant, but the production level fluctuates, net operating income determined by the variable costing method will:
A)fluctuate in direct proportion to changes in production.
B)remain constant.
C)fluctuate inversely with changes in production.
D)be greater than net operating income under absorption costing.
Under the variable costing method, which of the following is always expensed in its entirety in the period in which it is incurred?
A)fixed manufacturing overhead cost
B)fixed selling and administrative expense
C)variable selling and administrative expense
D)all of the above
- ACC - Michael, Friday, November 16, 2007 at 8:29pm
I think it's C. It's definitely not B.
If you make too much yet sales remain constant, your net operating income will be less because you have extra product.
- ACC - Anonymous, Friday, July 16, 2010 at 9:25am
yrfjhfg
- ACC - Anonymous, Tuesday, March 19, 2013 at 10:40pm
gnm
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