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- 1. Multiple Choice
which of the following is a period cost under Variable Costing and a product cost under Absorption Costing?
Fixed Manufacturing
Overhead
Variable Manufacturing Overhead
Variable Selling and Administrative Expense
Fixed Selling and Administrative Expense
- 2. Multiple Choice
Which costing method will have a higher work in process and finished goods inventory?
Absorption
Costing
Variable
Costing
- 3. Multiple Choice
Variable costing Net Income =
Fixed Man Overhead/Units Produced
Variable + Fixed Expenses
Absorption Net Income +- Fixed Man Overhead
Finished good inventory - Work in Process
- 4. Multiple Choice
When Inventory Increases during a period, which of the following is true?
Absorption = Variable
Absorption < Variable
Absorption >
Variable
Not enough info
- 5. Multiple Choice
Which of the following is an example of a traceable fixed cost?
Salary of the CEO of GM
Electricity expense of heating a grocery store
Enterprises's Maintenance Center for Kia Rental Cars
- 6. Multiple Choice
Segment Margin =
Contribution Margin - Traceable Fixed Costs
Contribution Margin - Fixed Costs
Variable Expenses - Fixed Costs
Profit - Margin of Safety
- 7. Multiple Choice
Dollar Breakeven Sales for a segment =
Common Fixed Expenses/
Segment CM Ratio
Segment Traceable Fixed Expenses/
Segment CM Ratio
Segment Traceable Fixed Expenses/
CM Ratio
Common Fixed Expenses/
CM Ratio
- 8. Multiple Choice
Using Variable Costing, what is the company's net income?
213k
223k
243k
253k
- 9. Multiple Choice
Using Absorption Costing, what is the company's unit product cost?
$143
$153
$163
$173
- 10. Multiple Choice
Using Absorption costing, what is the net operating income for the 2nd year of operations?
230k
210k
170k
150k
- 11. Multiple Choice
What is the company's variable costing net income in its first year of operations?
46600
23600
28600
32600
- 12. Multiple Choice
If 2nd year Absorption Net Income = $21k, what was its Variable Costing Net Income?
$0
$60k
$81k
$39k
- 13. Multiple Choice
Given Absorption Net Income = $50k, what is the amount of fixed manufacturing overhead?
$345k
$355k
$365k
$375k
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