Variable/Direct/Marginal and Absorption CostingDiscussion Questions and Answers:Questions:
Answers:
When using a variable costing system the contribution margin discloses the?When using a variable costing system, the contribution margin discloses the excess of... Revenues over variable costs. 15. Which of the following statements is true for a firm that used variable costing?
When using a variable costing system the contribution margin discloses the excess of MCQ?A . CM is the excess of total revenue over total variable costs, not over fixed costs.
When using direct costing system the contribution margin discloses the excess of?Statement 2. Under the direct costing method, the contribution margin discloses the excess of revenues over fixed costs.
When using a variable costing system the contribution margin CM is calculated as the excess of?The contribution margin is the excess between the selling price of the product and the total variable costs. For example, if an item sells for $100, the total fixed costs are $25 per unit, and the total variable costs are $60 per unit, the contribution margin of the product is $40 ($100 - $60).
|