ACCT 2102 TEST 2 CH 6 REVIEW 1

How would the following costs be classified (product or period) under variable costing at a retail clothing store?

• Choice A

• Choice B

• Choice C

• Choice D

Which of the following costs at a manufacturing company would be treated as a product cost under variable costing?

• • direct material cost

• • property taxes on the factory building

• • sales manager's salary

• • sales commissions

A cost that would be included in product costs under both absorption costing and variable costing is:

• • supervisory salaries.

• • factory rent.

• • variable manufacturing costs.

• • variable selling expenses.

The costing method that treats all fixed costs as period costs is:

• • absorption costing.

• • job-order costing.

• • variable costing.

• • process costing.

Which of the following is true of a company that uses absorption costing?

• Net operating income fluctuates directly with changes in sales volume.

• Fixed production and fixed selling costs are considered to be product costs.

• Unit product costs can change as a result of changes in the number of units manufactured.

• Variable selling expenses are included in product costs.

Mullee Corporation produces a single product and has the following cost structure:

The absorption costing unit product cost is:

• • $149 per unit

• • $65 per unit

• • $63 per unit

• • $128 per unit

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:

What is the total period cost for the month under variable costing?

• • $233,600

• • $110,400

• • $316,400

• • $344,000

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:

What is the variable costing unit product cost for the month?

• • $134 per unit

• • $155 per unit

• • $120 per unit

• • $131 per unit

Kray Incorporated, which produces a single product, has provided the following data for its most recent month of operations:

There were no beginning or ending inventories. The variable costing unit product cost was:

• • $159 per unit

• • $89 per unit

• • $94 per unit

• • $79 per unit

Beamish Incorporated, which produces a single product, has provided the following data for its most recent month of operations:

There were no beginning or ending inventories. The absorption costing unit product cost was:

• • $162 per unit

• • $206 per unit

• • $167 per unit

• • $287 per unit