Click to watch the Tell Me More Learning Objective 1 video and then answer the questions below.

1. Both fixed and variable factory costs are included as a part of factory overhead when accounting for absorption costing.

TrueFalse

2. Both fixed and variable factory costs are included as a part of factory overhead when accounting for variable costing.

TrueFalse

3. When units manufactured are less than the number of units sold, the variable costing operating income will be ________ that of absorption costing.

1. less than
2. greater than
3. equal to
4. None of the above

abcd