Respond that the following statements are TRUE or FALSE: 1) The primary focus of a contribution margin
Question:
Respond that the following statements are TRUE or FALSE:
1) The primary focus of a contribution margin income statement is on gross profit.
2) The only difference between absorption costing and variable costing in the determination of product costs is the way fixed manufacturing overhead costs are treated.
Multiple Choice Questions:
3) Which of the following costs is considered a period cost under variable costing?
A) Direct labor
B) Direct materials
C) fixed manufacturing overhead
D) Variable manufacturing overhead
4) Which of the following is true of absorption costing?
A) The variable manufacturing costs are considered period costs
B) The fixed manufacturing costs are considered period costs
C) Both variable and fixed manufacturing costs are considered product costs
D) Both variable and fixed manufacturing costs are considered period costs
5) Which of the following is true of variable costing?
A) Only variable manufacturing costs are assigned to products
B) Only fixed manufacturing costs are assigned to products
C) Only fixed administration overhead costs are assigned to products
D) Only variable selling overhead costs are assigned to products
Statistics For The Life Sciences
ISBN: 9780321989581
5th Edition
Authors: Myra Samuels, Jeffrey Witmer, Andrew Schaffner