Asked by bosst96 5.Under absorption costing, which of the following is NOT considered a product cost? a. Direct labor b. Fixed manufacturing overhead c. Variable manufacturing overhead d. Administrative costs
6. Which of the following statements is FALSE regarding absorption costing? a. Variable overhead is treated as a product cost. b. Absorption costing is required for external financial statements prepared in accordance with generally accepted accounting principles (GAAP). c. Fixed overhead is treated as a product cost. d. Fixed overhead is expensed in the period incurred. 7. Which of the following statements is FALSE regarding direct costing? a. Variable overhead is treated as a product cost. b. Variable costing is required for external financial statements prepared in accordance with generally accepted accounting principles (GAAP). c. Fixed overhead is treated as a period cost. d. Period costs are expensed as they are incurred. 8. Which of the following line descriptions would NOTbe found on an income statement prepared using absorption costing? a. Sales b. Contribution margin c. Cost of goods sold d. Net income 9. Assuming the number of units sold and produced are the same, which of the following statements is TRUE when comparing net income using absorption and direct costing? a. Absorption costing will yield a higher net income. b. Direct costing will yield a higher net income. c. Net income will be the same under both methods. d. Direct costing will have higher sales revenue. 10. Assuming the number of units produced is greater than the number of units sold, which of the following statements is TRUE when comparing net income using absorption and direct costing? a. Absorption costing will yield a higher net income. b. Direct costing will yield a higher net income. c. Net income will be the same under both methods. d. Sales revenue will be less using absorption costing. Answer & Explanation  Rated Helpful Answered by cheurus
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What is not considered a product cost?Period costs are all costs not included in product costs. Period costs are not directly tied to the production process. Overhead or sales, general, and administrative (SG&A) costs are considered period costs.
Which of the following are considered to be product costs under variable costing?Under variable costing, inventoriable cost only includes the variable cost to produce the products. Meaning, product cost includes direct material, direct labor, and variable manufacturing overhead.
Which of the following is not a product cost under absorption costing?Answer C. Variable manufacturing overhead is not a product cost under absorption costing.
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Under variable costing, which of the following is not considered a product cost
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