7. The unit product cost under variable costing does not include fixed manufacturing overhead cost.

True

False

8. Under absorption costing, product costs consist of direct materials, direct labor, and both variable and fixed manufacturing overhead.

True

False

11. Absorption costing is more compatible with cost-volume profit analysis than variable costing.

True

False

13. Only those costs that would disappear over time if a segment were eliminated should be considered traceable costs of the segment.

True

False

20. Green Company manufactures a single product and has the following cost structure: direct materials............................... $3 direct labor.....................................$4 variable manuf overhead..................$1 variable selling and admin expenses..$2 fixed manufacturing overhead........$100,000 fixed selling and admin expenses.......60,000

$10

$13

$15

$12