Managerial Accounting: Variable Costing (Ch.5)

Managerial Accounting: Variable Costing (Ch.5)

University

7 Qs

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Managerial Accounting: Variable Costing (Ch.5)

Managerial Accounting: Variable Costing (Ch.5)

Assessment

Quiz

Business

University

Medium

Created by

SLG Group

Used 56+ times

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7 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

2 mins • 1 pt

What is the key difference between Full (Absorption) and Variable Costing?

Full Costing treats Manufacturing Overhead as a period cost

Variable Costing treats Fixed Manufacturing Overhead as a period cost

Absorption Costing only considers variable costs to calculate net income

Variable Costing only considers variable costs to calculate net income

2.

MULTIPLE CHOICE QUESTION

2 mins • 1 pt

Which scenario results in the Net Income under Full Costing to be equal to the Net Income under Variable Costing?

Quantity Produced is equal to Quantity Sold

Quantity Produced is greater than Quantity Sold

Quantity Produced is less than Quantity Sold

3.

MULTIPLE CHOICE QUESTION

2 mins • 1 pt

Which of the three scenarios shows Net Income under Full Costing to be greater than the Net Income under Variable Costing

Quantity Produced is equal to Quantity Sold

Quantity Produced is greater than Quantity Sold

Quantity Produced is less than Quantity Sold

4.

MULTIPLE CHOICE QUESTION

2 mins • 1 pt

When is Net Income under Absorption Costing less than Net Income under Variable Costing?

Quantity Produced is equal to Quantity Sold

Quantity Produced is greater than Quantity Sold

Quantity Produced is less than Quantity Sold

5.

MULTIPLE CHOICE QUESTION

2 mins • 1 pt

If Quantity Produced is less than Quantity Sold, which of the following statements must be true?

There must have been some Beginning Inventory at the start of the period

There must have been some amount remaining in Ending Inventory at the end of the period

The company cannot have had any Beginning Inventory for this period

The difference between Net Incomes under Absorption and Variable Costing is fully accounted for by the difference in Ending Inventory

6.

MULTIPLE CHOICE QUESTION

2 mins • 1 pt

If Quantity Produced is greater than Quantity sold, what can account for the difference in the Net Incomes under the two costing methods.

The difference in Net Incomes can be accounted for by the differences in Ending Inventory

The difference in Net Incomes can be accounted for by the differences in Beginning Inventory

The difference in Net Incomes can be accounted for by the differences in Selling Expenses

The difference in Net Incomes can be accounted for by the differences in Administrative Expenses

7.

MULTIPLE CHOICE QUESTION

2 mins • 1 pt

For which scenario does the difference between the Beginning Inventory under Full Costing and the Beginning Inventory under Variable Costing account for the differences in Net Incomes under these methods?

Quantity Sold is equal to Quantity Produced

Quantity Sold is greater than Quantity Produced

Quantity Sold is less than Quantity Produced