Which of the following statements is true regarding variable costing? Multiple Choice It is the required...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Which of the following statements is true regarding variable costing? Multiple Choice It is the required method for external financial reporting. It includes direct materials, direct labor, and variable overhead costs in product costs. It is not permitted to be used for managerial reporting. It treats overhead in the same manner as absorption costing. It makes it easier to manipulate earnings with changes in production levels. Which of the following statements is true regarding absorption costing? Multiple Choice: O Fixed overhead is included in period expenses under absorption costing. It is not permitted to be used for financial reporting. It is not permitted to be used for tax reporting. It assigns all manufacturing costs to products, It requires only variable costs to be treated as product costs. Which of the following statements is true regarding variable costing? Multiple Choice It is the required method for external financial reporting. It includes direct materials, direct labor, and variable overhead costs in product costs. It is not permitted to be used for managerial reporting. It treats overhead in the same manner as absorption costing. It makes it easier to manipulate earnings with changes in production levels. Which of the following statements is true regarding absorption costing? Multiple Choice: O Fixed overhead is included in period expenses under absorption costing. It is not permitted to be used for financial reporting. It is not permitted to be used for tax reporting. It assigns all manufacturing costs to products, It requires only variable costs to be treated as product costs.
Expert Answer:
Answer rating: 100% (QA)
The detailed answer for the above question is provided below i It includes direct material direct la... View the full answer
Related Book For
Auditing a business risk appraoch
ISBN: 978-0324375589
6th Edition
Authors: larry e. rittenberg, bradley j. schwieger, karla m. johnston
Posted Date:
Students also viewed these accounting questions
-
Which of the following statements is true regarding variable costing? a) It is a traditional costing approach. b) Only manufacturing costs that change in total with changes in production level are...
-
Which of the following statements is true regarding the establishment of organizational culture and its effects on the organization? A) Today's trend toward decentralized organizations makes it...
-
Which of the following statements is true regarding the promotion mix? A. Sales promotions are long-term incentives to encourage the purchase or sale of a product or service. B. Personal selling is...
-
/* FILE: FLIX2YOU_data-load.txt */ /* Script to populate tables for FLIX2YOU .. current schema before revision */ /* Written by Gary Heberling on July 2, 2012 */ /* For IST210 world campus Penn State...
-
A production cell at Canderberry Candle facility operates 5 hours per day and uses a pull method to supply wicks to the assembly line. The wicks are used at a rate of 300 per day. Each container...
-
When business transactions are conducted internationally, cultural differences must be taken into consideration. Geert Hofstede is a leading researcher on how cultural variables can affect such...
-
In general how have interest rates changed since the late 1980s according to Figure 11.1? FIGURE 11.1 Interest and Inflation Rates, 1988-2010 10p Rate (%) 8 6 10-Year Treasury Bonds 4 2 AAA Corporate...
-
Santana, Inc. reports the following liabilities (in thousands) on its January 31, 2014, balance sheet and notes to the financial statements. Instructions (a) Identify which of the above liabilities...
-
Explain what a database management system is. Describe the functions of a database management system. 5 Paragraph Essay Intro ,Body , Conclusion
-
Perot Corporation is developing a new CPU chip based on a new type of technology. Its new chip, the Patay2 chip, will take two years to develop. However, because other chip manufacturers will be able...
-
4-3 Three mutually exclusive alternatives are being considered: A B C First cost, $ 2,000 7,000 18.000 Ann. Revenue, $/yr 600 Useful life, yrs 5 1,900 5 3.200 10 a. Calculate the PW of each...
-
Assume a Brazilian subsidiary of a multinational corporation owes an Austrian subsidiary $5 million and the Austrian subsidiary simultaneously owes the Brazilian subsidiary $7 million. As the result...
-
Sam the CAM quit and his records were corrupted. All we could salvage were the following bits of information: Budget at Completion (BAC) = $120,000 Cumulative Earned Value (EV) = $40,000 Cost...
-
A taxpayer has calculated most of their return, and realizes that they missed on claiming a deduction for their self-employment tax paid. They are in the 22% bracket, and their total calculated...
-
Directions: Write 4 to 5 sentences for each questions What is the expected value of the licensing arrangement to LAB? Assume a 5% royalty fee on any cash flows that Merck receives from Davanrik after...
-
A taxpayer has a vehicle and wishes to depreciate it. They drove 15,000 miles in total during the year, of which 9,250 were business miles and 1,250 were commuting miles. What ratio is used to...
-
If a = 241319, b = 25213 then the prime factorization of (a, b) =
-
What are the typical record-at-a-time operations for accessing a file? Which of these depend on the current file record?
-
Monitoring controls are effective in alerting management to the potential breakdown of other internal controls. Identify two or three monitoring controls that are applicable to the revenue cycle.
-
The following represents a critical review of the documentation of a new auditor for the cash and marketable securities audit areas. Several deficiencies are noted; they resulted in significant...
-
The auditor should consider known internal control deficiencies as part of the process of planning the audit. Required a. The following is a list of internal control deficiencies that were found at a...
-
Does having more children drive parents to drink more alcohol? We have data on the following variables: \(W A L C=\) budget share (percent of income spent) for alcohol expenditure; INCOME = total net...
-
A researcher has 1100 observations on household expenditures on entertainment (per person in the previous quarter, \$) ENTERT. The researcher wants to explain these expenditures as a function of...
-
An econometrician wishes to study the properties of an estimator using simulated data. Suppose the sample size \(N\) is set to be 100 . The intercept and slope parameters are 100 , and 10 ,...
Study smarter with the SolutionInn App