Ch.6: Variable Costing

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

Which costing method will have a higher work in process and finished goods inventory?

• Absorption

  Costing

• Variable

  Costing

Variable costing Net Income =

• Fixed Man Overhead/Units Produced

• Variable + Fixed Expenses

• Absorption Net Income +- Fixed Man Overhead

• Finished good inventory - Work in Process

When Inventory Increases during a period, which of the following is true?

• Absorption = Variable

• Absorption < Variable

• Absorption >

  Variable

• Not enough info

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

Segment Margin =

• Contribution Margin - Traceable Fixed Costs

• Contribution Margin - Fixed Costs

• Variable Expenses - Fixed Costs

• Profit - Margin of Safety

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

Using Variable Costing, what is the company's net income?

• 213k

• 223k

• 243k

• 253k

Using Absorption Costing, what is the company's unit product cost?

• $143

• $153

• $163

• $173

Using Absorption costing, what is the net operating income for the 2nd year of operations?

• 230k

• 210k

• 170k

• 150k